Published on 4 August 2025 in Client Alerts

European Commission publishes long-awaited EU Space Act proposal

On 25 June 2025, the European Commission published a proposal for an EU Space Act.  The proposal seeks to establish an EU single market for the space sector, with common rules regarding safety, security and sustainability for all entities providing space-based services in Europe.

Background

The EU Space Act proposal has been several years in the making.  In 2021, the EU launched its joint Space Programme, which formalised governance and funding structures for the EU’s space activities.  The next year, in 2022, the European Commission announced the preparation of a legislative proposal on space traffic management.  

This announcement was followed by various instruments supporting an EU space law.  Both the 2022 EU Approach for Space Traffic Management and the 2023 EU Space Strategy for Security and Defence Joint Communications encouraged the creation of a EU Space Act.  Similarly, at this time, the so-called “Draghi Report”(Part B) and the “Letta Report” noted the Commission plan to propose a Space Act and called for “greater coherence and coordination of the rules applied to space activities by all European Institution space actors through an upcoming EU Space law.”

Then, in 2024, in its Competitiveness Compass, also the European Commission itself identified the Space Act as one of its key priorities.  The next year, in 2025, the EU Commission included in its Work Programme the promise to prepare a Space Act.

Key aspects

The EU Space Act aims to introduce a harmonised framework and single market for space activities across the EU.  The rules will apply to EU and non-EU operators providing space services in Europe.

Key aspects of the proposed EU Space Act include:

• requirements to install flight safety systems and implement space debris control measures;
   
• requirements to manage all risks to space infrastructure during the entire life-cycle of a space mission, to subscribe to collision avoidance services and to submit an environmental footprint declaration;
   
• new cyber-rules tailored to the space sector (in addition to NIS 2) with a reporting mechanism through a new Union Space Resilience Network (EUSRN);
   
• the creation of a “Union Register of Space Objects” (URSO) to register all space operators; and
   
• an obligation for each EU State to designate or set up a competent authority to oversee compliance of Union Space operators.

Next steps and comment

The EU Space Act is not law yet.  It is first subject to negotiations within the EU Parliament and the Council.  Once adopted by both, the EU Space Act, being an EU regulation, will be binding on all EU Member States.

If adopted as proposed, the EU Space Act will have major implications for the European space industry.  EU space agencies will need to reconsider their role and function within a new legislative and regulatory landscape.  Although EU space companies stand to benefit from a stable, harmonised, and competitive regulatory environment across the EU, the imposition of binding regulations and penalties for non-compliance also presents new challenges.

In the past, several EU Member States raised concerns and suggestions in relation to the EU Space Act.  For example, in March 2025, Finland and Sweden raised concerns regarding the EU’s competence to legislate with respect to space and the risk of EU intervention in matters of defence and national security.  Reportedly, Germany, Italy and Slovakia also suggested that the proposal ought to focus on commercial space activities and exclude “sovereign space applications”. 

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