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

On 25 June 2025, the European Commission presented a proposal for a regulation to establish a common framework for space activities in the EU. This is the first attempt to create an internal market for space services and infrastructure, overcoming the current regulatory fragmentation resulting from a multiplicity of national laws.

The initiative, provisionally called the EU Space Act, aims to define uniform rules to ensure operational safety, robustness of infrastructure and environmental sustainability, with the goal of consolidating Europe's role in the global space economy.

The proposal is based on the need to ensure defined and coherent legal conditions for a rapidly expanding sector, which has an increasing number of players and significant economic, technological and geopolitical implications.

The new regulatory framework will apply both to operators established in the EU and to non-EU operators, with requirements calibrated according to company size and level of risk. The choice of the instrument of the regulation, which guarantees direct and uniform application, marks a change of approach compared to some member states' requests for a more flexible model.

 

Three areas of intervention: Safety, resilience, environmental impact

The text is structured around three main strands.

On the safety side, a harmonised authorisation system has been introduced for launching and handling space objects, with specific obligations for debris prevention and tracking in-orbit assets.

Resilience is addressed by introducing dedicated measures for cyber protection and risk management throughout the entire life cycle of space infrastructures.

In terms of sustainability, the proposal envisages the adoption of common technical standards to assess and limit the environmental impact of space activities, including by using enabling technologies like in-orbit maintenance and space waste removal.

 

A step-by-step path to European space governance

The initiative is one of the Commission's priorities. It’s determined to counter the effects of current regulatory fragmentation, which hampers the competitiveness of cross-border value chains in the EU by preventing joint projects and exacerbating the environmental impact of space activities. The aim is to promote common governance that enables the EU to address the challenges of increasing orbital congestion, protecting strategic assets and industrial sustainability in a coordinated manner.

The text proposes a two-year transitional period before the application of the regulation to allow operators and member states to adapt to the new provisions. The Commission has announced its intention to accompany this phase with support measures, in particular for small and medium-sized enterprises, by means of tools dedicated to administrative simplification, access to test infrastructures and preparing authorisation requests. The final adoption of the regulation will now require formal discussion between the European Parliament and the Council under the ordinary legislative procedure.

 

National updates: Space Law published in the Official Gazette

In Italy, the legislative process of the proposed law for a national regulation of space activities was concluded on 24 June with the publication in the Gazzetta Ufficiale of Law no. 89 of 2025 (the Law on Space).

The Law on Space regulates, first of all, the authorisation regime for space activities operated by Italian companies, but also by foreign companies in Italian space. To operate in space, private companies have to obtain authorisation. The authorisation certifies that the company has complied with specific objective requirements related to the safety, resilience and environmental sustainability of the individual operation. It also covers subjective requirements, including the conduct of the operator, technical skills, financial soundness and the presence of adequate insurance coverage.

The Space Law also introduces, alongside the liability of states as defined by international treaties, a strict liability on the part of individual space operators for damage caused to persons and property on Earth, and to aircraft in flight. The liability regime is also strongly linked to the introduction of compulsory insurance covering up to EUR100 million per claim, with reductions for innovative startups and research projects.

The creation of a EUR35 million Space Economy Fund by 2025 is also planned, to foster the market development of products and services based on space technologies, including by startups and SMEs.

 

EU Space Act and Space Law: Potential conflict?

The final approval of the Space Law in Italy and the start of the legislative process on the EU Space Act raise doubts about the potential conflict between national regulations and the future European law.

In both cases, the rules on space activities follow the principle of territoriality. And the rules also apply to foreign operators carrying out activities in areas under the sovereignty of the Italian state or the EU. This will create a further obstacle not only for Italian companies, but also for foreign companies entering the Italian market. Once the EU Space Act comes into force, they will have to navigate between supranational provisions and local regulations.

The current role of the Italian Space Agency as a supervisory and regulatory authority could clash with a more centralised European regulatory framework. Several European countries have already adopted a law regulating space activities, which makes the approval of the Space Law a necessary step to ensure Italy's competitiveness in a fast-growing sector like the aerospace economy. At the same time, the timeframe for the approval of the EU Space Act is expected to be very long: although there’s broad consensus on the importance of the space sector for the EU's competitiveness and strategic autonomy, member states have different opinions on the most appropriate legal basis and regulatory model for the intervention of the EU legislator.

We will have to wait to see the extent of the coordination intervention that will eventually be necessary to align the Space Act with the future EU Space Act. But the newly adopted national legislation can already provide clear and up-to-date rules, which are essential to navigate a rapidly developing sector like the new space economy.