Blog by Milja Liinanotko, Political Consultant for Transport, Tourism and Space
On June 25, 2025, the European Commission published the long-awaited EU Space Act, marking the EU’s first comprehensive regulation for the space industry. As the sector expands rapidly, this legislation sets new standards for safety, sustainability, and competition, aiming to secure Europe’s position in the evolving global space economy.
Why do we need a European Space Act?
Mario Draghi’s report on EU competitiveness highlights that the global space economy was valued at €572 billion in 2023 and is expected to grow at 9% annually, potentially reaching €1.6 trillion by 2035. However, Europe’s fragmented space regulations, with various national approaches, are stifling innovation, reducing market share, and increasing costs. While the private sector, particularly SpaceX, is gaining momentum, handling 98 of the 109 US launches in 2023, the space market remains largely controlled by institutional programs, which still face access restrictions. Adding to the challenge, Europe is currently investing six times less in space than the U.S., putting it at risk of falling behind both the U.S. and China.
Additionally, the growing number of satellites and space objects is threatening the continuity of space services. Between 2020 and 2023, operational satellites in orbit doubled to over 9,000, and today there are 11,000 satellites in orbit, and another 50,000 are expected to launch over the next decade. At the same time, more than 128 million pieces of debris are already circulating in space, sharply increasing the risk of collisions. This congestion limits available orbits for services like navigation and observation, and increases collision risks, known as the “Kessler effect.” Geopolitical tensions are also rising in space, with over 80 countries now operating satellites.
What is the EU Space Act?
The EU Space Act consolidates the current 13 national regulations into a single unified framework, cutting red tape, creating a fair and predictable playing field for businesses, and ensuring the protection of space assets. The legislation provides clear guidelines for operators within the EU and for those seeking access to the European market, aiming to ensure a fair and predictable regulatory environment. The Act is intended to apply from 1 January 2030, following a transitional period of two years.
The regulation is built on three key pillars: safety, resilience, and sustainability:
- Safety: The Act establishes guidelines for tracking space objects and mitigating space debris, crucial for maintaining secure access to space. These measures aim to prevent collisions and address the growing risks posed by space debris, which threatens operational satellites and future space missions.
- Resilience: The Act introduces cybersecurity requirements to protect European space infrastructure from evolving threats. These measures ensure the continuity of space services, safeguarding operators against cyberattacks and building trust in European space operations.
- Sustainability: Operators must assess and reduce the environmental impact of their activities, including rocket launches, satellite construction, and deorbiting. The Act encourages innovation in technologies like in-orbit servicing and debris removal, supporting businesses working to address space debris and reduce the environmental footprint of space missions.
To ease the industry’s transition to these new regulations, the Act provides support in the form of capacity building, access to testing facilities, and guidance for space operators in preparing their authorisation applications. Special attention will be given to start-ups and small to medium-sized enterprises (SMEs) to help them navigate the regulatory landscape without excessive costs.
The European Commission’s Vision for the Space Economy
In addition to the Space Act, the European Commission introduced a Vision for the European Space Economy, aiming to position Europe as a global leader in space by 2050. This vision views space as an interconnected ecosystem, from satellite manufacturing to space mining and in-orbit resource use. Key actions include creating a unified “Space Team Europe” to coordinate efforts, launching investment initiatives like seed funding and growth facilities, and developing tools to monitor Europe’s competitiveness in space. The vision also highlights global partnerships while protecting critical technologies and supply chains, with immediate implementation across the EU and collaboration with ESA and EUSPA.
Global Competitors: SpaceX, China, and Beyond
The EU Space Act directly impacts global space competitors from around the world, including US-based giants like SpaceX and its Starlink constellation. SpaceX, owned by Elon Musk, is one of the biggest private players in the space industry, operating thousands of satellites in low Earth orbit to provide internet services. The EU’s new regulation will require SpaceX to adhere to European standards if it wishes to operate within the bloc. The move has sparked concerns in Washington D.C. about potential barriers this regulation could pose to its private sector, particularly as the EU aims to enforce new green standards and cybersecurity measures, which are more comprehensive and standardised than those currently enforced in the U.S.
But it’s not just SpaceX that will be affected. China, with its rapidly expanding space programme, and Amazon’s Kuiper project, aiming to launch its own satellite constellation, will also need to comply with the EU’s rules if they want access to the European market. This puts the EU in direct competition with the US and China for dominance in space services, particularly in satellite communication and internet services.
The EU Space Act is expected to be fully implemented by 2030, with a two-year ramp-up period before the regulations take effect. During this phase, companies will have time to adjust their operations to meet the new standards. However, this extended timeline means that major space constellations, like Starlink, Kuiper, and China’s alternatives, can already be up and running by the time the regulations come into full force.
Next steps
The Commission’s draft regulation will now enter the ordinary legislative process with the European Parliament and the Council. While there is broad support for the importance of collective EU space assets and services in enhancing competitiveness and ensuring strategic autonomy, the path to the final law may not be straightforward. Major space economies like Germany and Italy have already lobbied for a less restrictive legal approach, proposing the Space Act be a directive rather than a regulation, arguing that stringent rules could stifle innovation and growth in the sector.
Most EU stakeholders have expressed to be in favour of a Space Act aimed at ensuring the safety, security, and sustainability of space operations while creating a unified market for space services. Some concerns have been voiced about the potential for added burdens that could hurt the competitiveness of EU space actors. Additionally, stakeholders want the regulations to apply to all entities providing space services within the EU. However, resistance is expected from the United States and its prominent space entrepreneurs, who are likely to push back on restrictions on market access.
The EU Space Act is not just a regulation but a step towards Europe’s strategic autonomy in space. By fostering innovation, ensuring sustainability, and building resilience, the Act will help Europe secure its future in space exploration and technology development, while protecting its interests against global competitors. As this legislation sets the stage for Europe’s role in the future of space, it could also establish global standards and position Europe as a key player in shaping the future of space exploration and innovation.