Introduction:
Space has become a central pillar of Europe’s strategic, economic, and security agenda. The successful maiden flight of Ariane 6 in July 2024 reaffirmed the European Union’s autonomous access to space after a period of reliance on non-European launch providers. This milestone comes at a time when the global space environment is rapidly evolving: the space economy is expanding, commercial actors are reshaping launch and satellite markets, orbital congestion is increasing, and space is increasingly recognised as a contested strategic domain. With more than 80 countries operating satellites and incidents such as anti-satellite tests underscoring the vulnerability of orbital infrastructure, space has become essential to both economic resilience and security.
At the core of these developments lies the structure of the space economy itself, which is composed of two main sectors. The upstream sector, which includes the research, development, manufacturing and launch activities of space assets, and the downstream sector, which includes the applications on Earth of space assets and technologies. The private sector is gaining ground in both the upstream and downstream sectors. In 2023, for instance, the private undertaking Space X accounted for 98 of the 109 launches by United States legal entities, illustrating the growing prominence of commercial actors in global launch activities and the competitive pressures facing Europe’s space industry.
Against this backdrop, European institutions have placed space at the heart of the Union’s competitiveness and open strategic autonomy agenda. The Commission’s 2024–2029 political guidelines, the recent Competitiveness Compass, and the Draghi and Letta reports emphasise the need for stronger investment, industrial leadership, and a coherent regulatory framework. The need for such a legislative initiative was also reflected in two Joint Communications: the EU Approach for Space Traffic Management and the EU Space Strategy for Security and Defence, echoing Member States’ calls for establishing, through a coherent and stable regulatory framework, an internal market for space activities. Despite possessing world-class space infrastructure across navigation, Earth observation, and connectivity, the EU continues to operate without harmonised space legislation, relying instead on a fragmented patchwork of national regimes. This regulatory gap limits market integration, complicates cross-border activity, and constrains the pooling of investment in a sector where global competitors, most notably the United States and China, are investing heavily.
Current Legislative Framework:
The 2021 Regulation establishing the EU Space Programme (2021–2027) provides the overarching legal backbone for the Union’s flagship space infrastructures and services, including Copernicus, Galileo, EGNOS, Space Situational Awareness, and GOVSATCOM. It defines objectives, governance structures, budgetary allocations, and security requirements, consolidating previously fragmented instruments into a single programme framework. The same Regulation formally establishes and mandates the European Union Agency for the Space Programme (EUSPA) as the operational arm responsible for service delivery, security accreditation support, and market uptake, ensuring continuity and resilience of EU space services under Commission oversight. The 2023 Regulation establishing the Secure Connectivity Programme creates the legal basis for IRIS², the Union’s multi-orbit satellite constellation designed to deliver secure governmental communications and commercial broadband services, reinforcing Europe’s strategic autonomy in critical infrastructure.
Furthermore, in line with the will for a shift toward a more comprehensive regulatory regime governing space activities across the single market, the European Commission has prioritised the development of an EU Space Act to establish a common European framework ensuring safety, resilience, and sustainability while creating a true internal market for space activities. The initiative represents a decisive step toward transforming EU space policy from a predominantly programme-based approach into a comprehensive regulatory architecture fit for the next phase of the space economy.
EU Space Act:
The EU Space Act is a legislative initiative by the European Commission that introduces a harmonised framework for space activities across the Union. The proposal, launched on 25 June 2025, aims to ensure safety, resilience, and environmental sustainability, while boosting the competitiveness of the EU space sector.
Europe’s current space regulatory landscape remains fragmented, with 13 different national regimes creating legal complexity and increased compliance costs for businesses operating across borders. The proposed EU Space Act seeks to address this by establishing a harmonised single market framework for space activities, reducing regulatory burdens and facilitating cross-border growth, particularly for start-ups and SMEs. The initiative was announced in the European Commission’s 2025 Work Programme and formally entered the policy cycle in early 2025, moving through impact assessment and stakeholder consultations, including a call for evidence which receive 15 contributions and a Public consultation, which gathered 118 contributions from individuals, organisations, academic/research institutions, public authorities, business associations, and NGOs. The Commission tabled the legislative proposal in June 2025, triggering the ordinary legislative procedure. Since mid-2025, the file has been under first-reading examination in European Parliament committees and Council working groups. As of 2026, it remains in the co-legislative negotiation phase, with potential trilogues ahead; it has not yet been adopted or implemented.
Structure of the EU Space Act:
I. Objective and scope: a common European framework
The EU Space Act aims to build one market with one rulebook for space activities, harmonising national rules on safety, resilience, and sustainability under Article 114 TFEU. By addressing regulatory fragmentation, the Regulation seeks to reduce costs, remove barriers to innovation, and strengthen the competitiveness of the European space sector. It applies to EU-based operators and, under certain conditions, to third-country operators providing services within the Union.
Adopting a life-cycle approach, the Act covers the entire mission cycle, from design and launch to in-orbit operations, collision avoidance, and end-of-life disposal, reflecting the rapid expansion of a sector with 11,000 satellites currently in orbit and up to 50,000 more expected by 2035.
II. Pillar One – Safety: Safer Orbits
The Safety pillar responds to increasingly congested orbital environments by introducing harmonised requirements to minimise debris generation, strengthen collision avoidance, and improve space traffic coordination. Operators must conduct risk assessments throughout the mission lifecycle and ensure responsible end-of-life disposal, including de-orbiting or transfer to designated orbits. By requiring the sharing of satellite position data and structured collision-avoidance procedures, the Act aims to reduce unnecessary manoeuvres, extend satellite lifespans, and prevent costly incidents in an environment where orbital congestion is rapidly increasing.
III. Pillar Two – Resilience: securing space systems
Recognising that satellites underpin critical services, including navigation, communications, defence, and finance, the Resilience pillar introduces tailored cybersecurity and risk-management obligations. Operators must implement protective measures against cyberattacks, signal interference, and malicious threats, alongside incident reporting requirements. This responds to the rising number of cyberattacks on satellites, which cost the industry an estimated €1 billion annually, and embeds space infrastructure within the EU’s broader security and strategic autonomy agenda. The objective is to prevent service disruptions and ensure uninterrupted satellite data for essential economic and public functions.
IV. Pillar Three – Sustainability: a greener space economy
The Sustainability pillar promotes the long-term environmental stewardship of outer space. It introduces requirements for life-cycle assessments, shared environmental impact databases, and transparent sustainability reporting. By embedding environmental considerations into mission design, the Act seeks to reduce costs, improve resource efficiency, and prevent debris accumulation. This is particularly relevant as Earth Observation services continue to expand (expected to nearly double by 2033) and as small satellites, while innovative, generate increasing environmental impact. The EU positions itself here as a global standard-setter for responsible and sustainable space operations.
V. Pillar Four – authorisation, supervision and governance
The Act establishes a harmonised authorisation regime, under which national competent authorities grant approvals based on common EU criteria. Operators must demonstrate compliance with safety, resilience, and sustainability requirements before launch and during operations. Member States retain responsibility for supervision and enforcement, including penalties for non-compliance, while EU-level coordination ensures consistent application across the internal market. This governance model combines unified rule-setting with decentralised implementation, reinforcing legal certainty and regulatory coherence.
VI. Competitiveness and innovation
Although the Regulation introduces new obligations, it is framed around proportionality and technological neutrality, with considerations for SMEs and emerging actors to avoid unnecessary administrative burdens. By harmonising rules, improving legal predictability, and reducing fragmentation, the Act aims to foster innovation, expand market opportunities, and support Europe’s transition toward a cleaner, safer, and more competitive space economy.
EU Space 2026 updates:
In 2026, the European Union is set to advance the development of a proposed “Space Shield”, one of four flagship initiatives endorsed by the Council of the European Union under its new readiness roadmap adopted in October. While technical and budgetary details remain limited, the initiative is described as aiming to strengthen the protection and resilience of EU space assets and services. The concept is expected to build upon existing EU space infrastructure, including the Galileo positioning, navigation and timing (PNT) system, while supporting Member States in developing interoperable capabilities, such as systems designed to counter adversary jamming and other emerging threats to space-based services.
In parallel, the European Defence Fund (2021–2027), with a total budget of €7.3 billion, has incorporated new space-related priorities into its 2025 work programme. These include a €49 million feasibility study on on-orbit servicing and a €66 million prototype project for a small low-Earth orbit (LEO) satellite constellation dedicated to intelligence, surveillance, and reconnaissance. Following the call for proposals (deadline 16 October), project awards are expected to be announced in April 2026. Together, these developments signal a growing integration of space policy within the EU’s broader defence, resilience, and strategic autonomy agenda.
EU space policy is no longer limited to rocket launches and satellites, it has become a horizontal industrial and competitiveness policy. It is directly relevant not only for space manufacturers and launch providers, but also for telecom and cybersecurity companies through IRIS², mobility and automotive firms via Galileo, climate and agri-tech businesses using Copernicus data, defence and dual-use industries, as well as AI, data and cloud providers. Increasingly, companies that rely on positioning, secure communications, geospatial data or climate risk modelling are affected by EU space investments. In short, space policy today underpins Europe’s strategic autonomy, digital transformation and green transition, making it relevant far beyond the traditional space sector.
