Noerr | EU Commission Proposes EU Space Act

On June 25, 2025, the European Commission introduced a proposal for an “EU Space Act.” This comprehensive proposal spans over 100 pages and includes several annexes detailing regulations aimed at harmonizing the space sector. The proposal seeks to address the growing economic and political significance of space activities, which can’t be sufficiently managed by fragmented national regulations. International law currently only mandates that states must authorize and supervise space activities, a requirement yet to be implemented in Germany. The planned “Space Law” in Germany reached the stage of a foundational paper in the last legislative term but went no further.

The increasing significance of space for European defense interests was already signaled in the EU Space Strategy (2023) and the recent Defence-Readiness Paper from June 2025. Although the EU Space Act is explicitly designed not to apply to the defense sector, it includes numerous cross-references and calls for political cooperation, such as with ENISA and EDA.

Goals and Measures

• Unified Framework: The EU Space Act aims to create a more stable and competitive environment for innovation by harmonizing key aspects of space activities, particularly in terms of safety, resilience, and sustainability. Space activities will also benefit from the principle of free movement of goods within the EU.
• Authorization: Space activities are subject to authorization requirements. As a key prerequisite for obtaining an authorization, operators shall demonstrate compliance with the technical and organizational requirements stipulated in der EU Space Act. The authorization and supervisory entity is typically a national authority in each member state, tasked with a detailed assessment of the prerequisites. To simplify authorizations, entire satellite networks (“constellations,” such as those in Low-Earth Orbit) can be approved uniformly rather than on an individual basis.
• Safety, Trackability, and Space Debris: The proposal includes measures to enhance safety, e.g. by reducing collision risks through requirements for manoeuvrability of spacecraft and traffic rules. It also outlines better tracking procedures via a space object register and requires end-of-life disposal to reduce space debris. These measures aim to support both safety and the sustainable use of space.
• Cybersecurity and Risk Management: Detailed cybersecurity rules are proposed to strengthen resilience against cyber threats in the space sector, encompassing risk management systems, access rights, physical resilience, cryptography, and crisis communication.
• Environmental Metrics: A common assessment procedure for the environmental impacts of space activities is intended to promote sustainable technologies.
• Defense: Although objects used solely for defense are excluded from the Act, space-based data is valuable for both defense planning and research. Efforts to minimize light and radio interference (“dark and quiet sky”) are also relevant to the performance of defense systems.

Impacts and Opportunities

The scope of the EU Space Act is broad. Its implications affect not only space companies but also all entities providing space-related services, including those dealing with space-based data. For businesses in the space sector, the EU Space Act offers legal clarity, particularly for cross-border operations. However, it sets significant demands for robust risk management systems, introducing substantial compliance requirements. These unified standards establish a “level playing field” for all European stakeholders, albeit at a high cost level. In its “impact assessment,” the Commission estimates that costs for space activities will increase by 3%-10% (depending on prior stringency of national regulations). Nonetheless, the Commission is confident that reduced administrative hurdles, simplified authorization procedures, enhanced security, extended satellite lifespan, and competitive advantages in international markets will more than offset these costs. Compliance with these regulations will be monitored by a newly established agency, with fines of up to twice the economic benefits or 2% of the global annual corporate revenue for violations.

The EU also aims to take a leading role in global efforts to sustainably utilize space by introducing standardized procedures to reduce space debris and improve security and resilience.

Conclusion

With this proposal, the EU Commission fills a gap in community law for a realm naturally characterized by cross-border relevance. It addresses crucial areas to provide the space economy with clear rules and ultimately protect high investments. Whether the strategy to gain a global competitive edge through comprehensive regulations will succeed remains to be seen. Regardless, all companies offering or intending to offer space-related services should proactively engage with potential future regulations under the EU Space Act.

Compliments of Noerr – a Platinum Member of the EACCNY