Draft Law on Space Economy approved by Italy's Chamber of Deputies

On 6 March 2025, Italy’s Chamber of Deputies approved a draft law on Space Economy, submitted by the Prime Minister and the Ministro delle Imprese e del Made in Italy, which has now been sent to the Senate for final approval.

The approval of the Space Economy draft law is a significant legislative step towards regulating and promoting Italian activities in outer space. It will establish a comprehensive framework for Space exploration, commercial ventures and international collaborations, aligning Italy with global standards in Space governance.

The bill applies to the Space Activities carried out by any operator in Italy as well as to the Space Activities carried out by Italian operators outside Italy.

Finally, the future law will provide that the Italian Space Agency will be the authority responsible for controlling and supervising the Space Activities carried out in Italy or by Italian operators.The main pillars of the Space Economy draft law are:

• Space and Space Activity Definitions: Space is considered as a “strategic crossroads of geopolitical, economic, scientific and military interests” while Space Activity is primarly defined as “the launch, release, in-orbit management and re-entry of space objects, including the disposal from Earth orbits and removal of objects, in-orbit services, assemblage and use of orbiting space stations as well as the production of objects in outer space and on celestial bodies; the exploration, extraction and use of natural resources in outer space and on celestial bodies”.

• Regulatory Framework and Authorizations: Clear guidelines for licensing, safety protocols and environmental impact for governmental and private entities involved in Space missions. Issuance of an authorization will be required for each single Space Activity and will include objective (eg the environmental sustainability of the project) and subjective requirements (eg professional and technical capabilities and adequate financial standing). Granting of authorizations will be subject to the payment of a fee whose amount will be determined by implementing decrees considering the status of the applicant, the purpose of the mission as well as its size and level of risk.

• Liability Regime: A comprehensive liability regime is introduced to address potential damages arising from Space Activities. In accordance with the Outer Space Treaty (1967) and the Liability Convention (1972), Italy assumes international responsibility for national Space Activities, whether conducted by governmental or private entities. Moreover, any operator engaging in Space Activities has to provide adequate financial guarantees or insurance coverage to compensate for damages caused to third parties on Earth or in outer Space.

• International Cooperation: Emphasizing Italy’s commitment to global Space initiatives, aiming to facilitate partnerships with international Space agencies and organizations; authorization for Space Activities can be replaced by recognizing an authorization issued by a foreign state according to equivalent criteria.

• National Plan for Space Economy: A national plan to be adopted to promote Space Economy at national level with a time horizon of at least five years. The main activities to be carried out will be managing relationships with institutional stakeholders in relation to concluding innovative partnership agreements, analyses related to the combined use of the various instruments available for providing resources and programming, control and monitoring activities of the initiatives financed with the Space Economy Fund’s resources.

• Space Economy Fund: A fund will be created to foster the development of the market for products and services based on space technologies. The allocation for 2025 is EUR35 million. The Fund is also replenished through proceeds from contributions related to permits and penalties recovered.

• Transmission Capability Reserve: The Ministero delle Imprese e del Made in Italy will provide for the establishment of a national transmission capability reserve through satellite communications managed exclusively by entities belonging to the EU or the Atlantic Alliance, also to ensure an appropriate industrial return for Italy. The reserve is aimed at assuring, in critical situations or when terrestrial networks are unavailable, the use of either satellites and constellations in geostationary orbit, increasing diversification and guaranteeing national security.

• Incentives to small/medium companies and startups: Special rules and incentives are established to facilitate the access of small and medium-sized companies and innovative startups to public contract awards in the field of Space Activities and aerospace technologies.

The approval of the Space Economy draft law without any significant amendments from the Senate is a unique opportunity to invest in global Space initiatives and projects related to developing Space technologies and infrastructure.

DLA Piper is currently engaged in multiple satellite projects covering more than 100 countries. We help operators acquire the necessary regulatory authorizations from administrations around the world, while also drafting and negotiating business agreements for satellite services, satellite gateways and user terminals.

Our team members have strong technical backgrounds, with experience in radio spectrum allocations, frequency registration procedures and various coordination requirements. For further information, please contact Dino Dima, Naomi Pryde or Mike Conradi.