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The EU Space Act could mark the most significant shift yet in how Europe governs the fast-growing space economy. Unveiled by the European Commission on 25 June 2025, the proposed regulation sets the stage for the first unified legal framework for space activities across the EU.
By addressing the current patchwork of national laws, the EU Space Act aims to create an internal market for space services and infrastructure—aligning legal certainty with geopolitical ambition.
Three Legal Anchors: Security, Resilience, Sustainability
The draft Regulation—the EU Space Act—builds on three foundational pillars:
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Security: A harmonised authorisation system for launching and operating space objects, including obligations on orbital tracking and debris prevention.
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Resilience: Mandatory cybersecurity and risk-management standards for the entire lifecycle of space infrastructure.
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Sustainability: Common environmental benchmarks for space activities, supporting green technologies such as in-orbit servicing and space debris removal.
This approach reflects the EU’s effort to balance commercial opportunity with long-term responsibility. The space race is no longer just about reaching orbit—it’s about staying there safely, securely, and sustainably.
Legal Certainty for a Borderless Sector
Why now? The Commission is responding to urgent calls from industry for legal certainty in a sector where the number of players is exploding and the stakes—economic, technological, and strategic—have never been higher.
The EU Space Act would apply to both EU-based and foreign operators, with obligations tailored to company size and risk exposure. By opting for a Regulation rather than a Directive, the EU ensures direct applicability, limiting national deviations that currently hinder transnational projects and investments.
A two-year transitional period is proposed to allow Member States and companies—especially SMEs—to adapt. During this time, the Commission will provide administrative support and facilitate access to testing infrastructure.
Meanwhile in Italy: A National Law with International Implications
On 24 June 2025, Italy enacted Law No. 89/2025, the country’s first comprehensive legal framework for space activities. It introduces:
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A licensing regime for domestic and foreign operators;
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Mandatory insurance of up to €100 million per incident (with carve-outs for startups and research);
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Operator-level liability for damages caused to people, property, or aircraft;
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A €35 million Space Economy Fund to foster innovation and commercialization.
The law aims to position Italy competitively within the global space economy—but its timing raises questions about legal harmonisation with the forthcoming EU framework.
Clash or Complement? EU vs. National Regulation
With the EU Space Act now on the table, a potential regulatory collision is on the horizon. Both the Italian law and the EU proposal apply to foreign entities operating under territorial jurisdiction. Companies may soon face overlapping or even conflicting obligations.
One area of likely tension is regulatory oversight. Italy’s national space agency is expected to play a central role under its domestic law. But what happens if the EU decides to centralise oversight?
That said, many Member States already have space laws, and Italy’s move is seen by many as a necessary step to avoid being left behind.
Final Approach: Toward a Single European Orbit?
While the legislative process at EU level will be lengthy, the EU Space Act sends a strong signal: the European space economy is no longer a political side project. It is a strategic priority.
The coming months will be critical. Without coordinated alignment between national and EU rules, Europe risks building a fragmented regulatory environment in orbit—precisely what the EU Space Act is meant to avoid.
On a similar topic, you can read the article “Italian bill on the New Space Economy: the new frontier of space law and investments“.
Authors: Marianna Riedo and Gabiele Cattaneo