Europe in orbit: The EU Space Act as a legal milestone of a strategic space policy

On 25 June 2025, the EU Commission presented the long-awaited proposal for an EU Space Act. Interested parties have until 11 September 2025 to submit their comments.

The proposal is ambitious. It contains a broad spectrum of binding requirements, ranging from the authorisation of space-based activities to obligations for the registration and monitoring of space activities, technical and operational requirements for safety, resilience and environmental compatibility, as well as specific requirements for risk management and cyber security. The draft provides for all players to be covered if they carry out space activities in the EU or offer space-based data and services on the EU market. Third-country operators that provide their services or data in the EU are also subject to the regulations

Technological and economic strength meets legal fragmentation

European space programmes such as IRIS² (secure satellite communication), Copernicus (earth observation), Galileo (navigation system) and ClearSpace-1 (space debris removal) impressively underline the technological excellence of the European Union. The numerous start-ups and scale-ups that are significantly driving the dynamic growth of the European space sector with innovative business models also testify to the industry's high level of innovation and competitiveness. According to the European Commission, the space sector is expected to account for around 20% of the estimated EUR 700 billion volume of the EU internal market by 2031.

However, the players in the space markets have so far operated in a legally fragmented environment. Internationally, the use of outer space has been regulated for decades on the basis of binding international treaties, supplemented by numerous resolutions, recommendations and guidelines. The United Nations Committee on the Peaceful Use of Outer Space (UNCOPUOS) is the leading organisation in this regard. Its work also includes recommendations to the contracting states - which include the EU member states - on the implementation of obligations under international treaties at national level. In the EU, 13 of the 27 member states now have national space laws, which in particular contain regulations on the authorisation and legal framework for space activities, including provisions on liability and insurance.

The EU Commission sees this legal fragmentation as an overall obstacle to the development of the internal market in this area. A harmonised legal framework for space activities should strengthen the competitiveness of the European space sector, promote investment and innovation, reduce administrative hurdles and establish the EU as a global standard setter for safe, resilient and sustainable space activities.

Which areas are excluded?

Space-related activities in the area of defence and national security are explicitly excluded from the scope of the EU Space Act - regardless of whether they are carried out by state or private actors.

The management and allocation of frequency and orbit rights, which are essential for the operation of space-based infrastructures - such as for communication, navigation or internet services - are also not covered. This area is subject to an independent, complex network of international, EU and national regulations and remains of central importance for the space industry.

Provisions on liability and insurance, which are regulated (differently) in national laws and are of considerable importance for start-ups and SMEs in particular, remain the preserve of the EU Member States.

Who is affected?

All players who implement space-based business models are affected. This includes

• Space companies and operators (space operators): large established companies (e.g. Airbus Defence and Space, OHB SE), small and medium-sized enterprises (SMEs), start-ups and so-called "new space" players that operate, develop, launch or control satellites, launch vehicles or other space infrastructure (e.g. GomSpace/Denmark, Unseenlabs/France, Isar Aerospace/Germany),
• providers of space services and data that offer services such as earth observation, navigation, communication or in-orbit services on the basis of satellite infrastructure (e.g. Eutelsat, SES, Planet Labs Germany),
• Operators of launch and ground infrastructure that provide and operate launch sites, control centres or other ground-based infrastructure for space activities (e.g. Andoya Space/Norway),
• Research institutions and universities that carry out space missions, develop satellites or test experimental technologies in orbit (e.g. German Aerospace Centre, Fraunhofer Institutes),
• international space-related organisations, i.e. organisations that operate space infrastructure or carry out technical assessments for EU member states (e.g. ESA, EUMETSAT), and
• companies from non-EU countries that want to offer space services or data in the EU internal market (e.g. SpaceX, OneWeb).

What is to be regulated?

In 120 articles and 10 annexes, the draft comprehensively regulates all phases of space activities - from authorisation to end-of-life. Delegated acts and implementing acts for further specification will follow. In particular, the proposal provides for the following regulations:

• Authorisation requirement: Every space-related activity requires official authorisation, whereby the requirements for safety, resilience and environmental compatibility must be demonstrated. There is a simplified authorisation procedure for constellations.
• Registration obligations: All authorised activities and operators are recorded in a central Union Register of Space Objects (URSO). Third-country operators and international organisations must also register if they are active in the Union market.
• Technical and operational requirements: Detailed requirements apply to the avoidance and reduction of space debris, the traceability of objects, the use of collision avoidance services, the limitation of light and radio pollution and safe end-of-life disposal.
• In-Space Operations and Services (ISOS): Companies that perform services on spacecraft or other objects in orbit (e.g. inspection, maintenance, repair, refuelling, conversion, transport) must meet the specified requirements from 2034. Union-owned assets that are above the mini-satellite class and are operated by Union Space Operators must have minimum technical capabilities to receive in-space services.
• Risk management and cyber security: Operators must implement comprehensive risk management systems tailored to the specifics of the space sector, covering both physical and digital threats. Increased requirements apply to critical infrastructure and the regulation acts as a lex specialis over the NIS2 and CER directives.
• Environmental impact: There is an obligation to calculate and declare the environmental footprint of the respective space activity over the entire life cycle. The methodology for this will be standardised across the EU.
• Establishment of technically qualified bodies (Qualified Technical Bodies - "QTB"): QTBs are responsible for technical assessments regarding the fulfilment of the intended technical requirements. They support the national authorities in granting authorisations for space activities and verify evidence, for example when calculating the environmental footprint of space missions. QTBs are appointed and monitored by the Member States.
• Enforcement and sanctions: National authorities are given far-reaching monitoring, investigative and sanctioning powers. Violations may result in severe penalties, including the withdrawal of authorisation.
• Mutual recognition and market access: Authorisations issued by a member state are generally recognised throughout the EU, although individual member states can impose stricter requirements for activities on their territory if there is an objective need to do so;
• Support measures: Support and relief measures are provided in particular for start-ups, SMEs and research organisations in order to facilitate the implementation of the requirements.

Conclusion

Overall, the proposal is a necessary and trend-setting impulse that appears appropriate with the introduction of uniform authorisation, safety and sustainability standards in view of the increasing commercialisation and internationalisation of the orbit. In this respect, the proposal sets clear standards for space traffic management, cyber security and the handling of space debris. This serves both the protection of public interests and the long-term usability of space.

However, regulatory overload must be avoided and the innovative strength of the European space industry must be maintained. In this respect, the planned depth of regulation and the complexity of the proposal should be critically scrutinised. With far-reaching obligations - such as data provision, technical traceability and de-orbiting - SMEs in particular are threatened with a considerable compliance burden. Some of the requirements are technically demanding and could discourage innovation.

In addition, the practical enforceability of EU-wide control and sanction mechanisms remains questionable, particularly in the case of cross-border situations or third-country players. The planned central EU coordination centre is a step in the right direction, but requires a clear delineation of competences vis-à-vis national authorities.