BRUSSELS AIMS FOR THE STARS: THE EU SPACE ACT UNVEILED
On 25 June 2025, the European Commission presented the proposal for a regulation known as the EU Space Act, taking the first concrete step toward creating a unified internal market for space activities.
The initiative seeks to replace the current patchwork of national laws—comprising thirteen different regulatory systems—with a single European legal framework. The goal is to boost the EU’s global competitiveness, particularly in comparison with the United States and China.
The proposed Regulation is built on three core pillars: security, resilience, and sustainability.
Security: The Act introduces mandatory satellite tracking and disposal plans, addressing the growing issue of orbital pollution. Equally important are the new obligations concerning the use of collision avoidance services. For businesses, this means greater operational predictability, fewer in-orbit incidents, and significantly lower costs from corrective manoeuvres.
Resilience: The Act requires risk assessments across the full lifecycle of space missions, with strong emphasis on cybersecurity and electronic interference. This marks a regulatory breakthrough aimed at preventing blackouts and malfunctions while tackling a rising threat—space-related cyberattacks, which cost the industry around €1 billion annually. Additional measures are introduced to ensure the continuity of critical data services in sectors such as telecommunications, defence, and transport.
Sustainability: The third pillar establishes a set of rules to promote low-impact technologies and extend satellite lifespans. The regulation mandates lifecycle assessments for all missions and foresees the creation of shared databases to track and reduce environmental impact. Emerging technologies—such as in-orbit servicing and debris removal—are also incentivised. The objective is twofold: lowering costs while making missions more efficient and sustainable.
In case of violations, companies may face fines of up to 2% of their global annual turnover or an amount equal to twice the profits gained or losses avoided through the breach. There are, however, exceptions. The regulation does not apply to satellites already in orbit, nor to those used exclusively for military or national security purposes.
The Act also addresses operations beyond EU borders. Non-European companies operating in the EU market must appoint a legal representative within the Union and comply with equivalent requirements—unless their country of origin is recognised as offering comparable oversight (as is the case with the United States).
CONTEXT
The strategic importance of the space sector for the EU has been long recognised, as highlighted in both the Letta and Draghi reports. This direction has since been reaffirmed in the Competitiveness Compass and the Commission’s 2025 Work Programme.
The need for such a measure also emerged in two joint communications: the EU Approach for Space Traffic Management and the EU Space Strategy for Security and Defence. These communications responded to Member States’ calls for a coherent, stable, and harmonised regulatory framework capable of fostering a true internal market for space—one that can drive innovation and investment.
Pressure for EU-level action has come not only from Member States, but also from real-world developments in orbit. In recent years, there has been an exponential rise in so-called "constellations" of low-orbit satellites, led by Elon Musk’s Starlink. These systems offer faster, more reliable connections—but at the cost of increasing space congestion. With over 10,000 satellites already in orbit and 50,000 more expected by 2030, the volume of debris is also growing rapidly. This has prompted the EU’s clear objective: curb the surge in space debris and tighten oversight of sector operators before the situation becomes unmanageable.
Yet the issue is not just technical. Space is now both congested and contested—prompting the EU to adopt a firmer regulatory stance. For years, the United States and China have competed to shape global space governance, rallying blocs of aligned countries. The US spearheaded the Artemis Accords—a set of non-binding principles for peaceful cooperation in space exploration, endorsed by most EU Member States. Meanwhile, China has proposed its own framework for peaceful space use, aiming to build a parallel alliance of partner countries.
Adding to the geopolitical complexity are Europe’s own vulnerabilities, exposed during the war in Ukraine. Elon Musk’s satellite network played a crucial role in maintaining communications during the conflict, highlighting the risks of relying on non-European private infrastructure. This dependence triggered alarm bells in Brussels, reinforcing the need for the EU to strengthen its strategic autonomy in space.
In short, the confluence of rapid sectoral developments, intensifying global competition, and fragmented national regulations has made the EU’s initiative both timely and necessary. By establishing its own comprehensive framework, the Union is seeking not only to regulate its internal market, but also to shape the rules of the game on the global stage.
Backing this ambition are strong political signals. French President Emmanuel Macron, among others, has called for significantly increased investment in the space sector, urging the next EU budget to allocate at least €60 billion to space policy. Underscoring France’s determination, the government has also increased its stake in Eutelsat—seen as the most credible European alternative to Starlink.
ITALY TAKES OFF
On the same day the EU Space Act was presented, Italy enacted Law No. 89 of 13 June 2025, introducing—for the first time—a comprehensive national framework governing outer space and both public and private space activities.
Entitled "Provisions on the Space Economy," the law places Italy among the few countries worldwide with a dedicated space law. It addresses geopolitical, technological, and environmental challenges with a bold vision and advanced legal instruments.
The text clearly defines space activities and requires prior authorisation for all operators, including Italian entities active abroad. It sets firm requirements on national security, cybersecurity, environmental sustainability, debris management, and insurance coverage. Implementation and coordination are entrusted to a structured institutional setup involving the Italian Space Agency (ASI), COMINT, and the Prime Minister’s Office.
The law also governs the registration of space objects, sets liability rules for operators and the state, and establishes procedures for revoking or suspending authorisations on security grounds. Notably, it includes dedicated rules for public procurement in the space sector, aligning with the Public Contracts Code and opening access to innovative start-ups and SMEs.
Through this dual legislative push, both Italy and the EU are positioning themselves as key players in the new space era. The result: tangible new opportunities for Italian and European businesses, now able to operate within a clearer, more stable, and harmonised legal environment.
