There's a tendency by some to describe money paid out by the government for services rendered as "government funding", framed like some sort of unearned charitable gift given by the government to the company which entitles the government to all of the credit in the end. This is an immature point of view that is often the product of motivated reasoning (particularly, motivated by personal dislike of the people/companies involved. There's also some people who thought that capitalism would be trapped on earth with space being the exclusive domain of governments, and are bitter to realize that won't be the case.) Maybe your comment is reacting in part to this tendency, I find myself frustrated with it as well.
Nevertheless, the truth is that SpaceX didn't have the money to develop Falcon 9 until they got that contract. I think themgt is correct to say the creation of contracts like that in Europe could provide European rocket companies the same kind of opportunity to develop technology and prove themselves.