EU Space Act and Italian Space Law: Innovation or potential conflict?

For World Space Week 2025, DLA Piper is exploring how the space industry is evolving in jurisdictions around the world. To read about developments in other countries, including in relation to the European Union (EU) Space Act, see the firm’s landing page.

Amid ongoing developments related to the EU Space Act, the Italian Parliament passed its first national law on space economics (Law No. 89 of 2025 or the Italian Space Law) which came into force on June 25, 2025.

The Italian Space Law primarily regulates the authorization regime for space activities carried out by Italian companies, but also by foreign companies operating within Italian space. According to the law, in order to engage in space activities, private companies must obtain authorization certifying compliance with specific objective requirements related to the safety, resilience, and environmental sustainability of the specific operation, as well as subjective requirements concerning the operator's conduct, technical expertise, financial soundness, and the existence of adequate insurance coverage.

The Italian Space Law also introduces, in addition to the responsibilities of states as defined by international treaties, strict liability for individual space operators for damage caused to persons and property on Earth, as well as to aircraft in flight. The liability regime is also closely linked to the introduction of compulsory insurance covering up to EUR 100 million per claim, with reductions for innovative startups and research projects.

Further, the law provides for the creation of a EUR 35 million Space Economy Fund for 2025 to promote the development of the space-based product and service market, which includes startups and small and medium-sized enterprises (SMEs).

EU Space Act and Italian Space Law: A potential conflict?

The final approval of the Italian Space Law alongside the start of the EU Space Act’s legislative process could prompt concerns about inconsistencies between national legislation and future EU law. In both cases, the rules related to space activities follow the principle of territoriality, with consequent application to foreign operators carrying out their activities in areas subject to the sovereignty of the Italian State or the EU. This could create an additional obstacle not only for Italian companies but also for foreign companies entering the Italian market, which, once the EU Space Act enters into force, will need to navigate supranational provisions and local regulations. Furthermore, the current role of the Italian Space Agency as a supervisory and regulatory authority could conflict with a more centralized European regulatory framework.

However, it is worth noting that several European countries already have laws regulating space activities. With this, the Italian Space Law could bolster Italy's competitiveness in the rapidly growing space economy.

Pending clarification regarding its coordination with the EU Space Act, the newly approved national legislation provides up-to-date rules for companies in a rapidly developing sector.

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