Vulcan View: The latest EU developments 23 June – 27 June

European Commission launches Space Law to boost competitiveness and space safety

On Wednesday, (25 June), the European Commission unveiled a historic legislative proposal, the EU Space Act, aimed at creating a single, harmonised market for space activities across the Union. The ambitious plan seeks to bolster the competitiveness of Europe’s burgeoning space sector, enhance the safety of operations in an increasingly crowded orbital environment, and ensure the long-term sustainability of space exploration. The proposal comes at a critical juncture, as the global space economy is set to triple in value to $1.8 trillion over the next decade, and is designed to prevent a fragmented European market from falling behind international competitors.

In addition, by replacing the current patchwork of 12 different national space laws with a single set of predictable rules, the Space Act aims to cut red tape and create a level playing field, particularly benefiting start-ups and SMEs. Moreover, the Commission will ensure that authorisations granted in one Member State would be recognised across the EU, simplifying cross-border operations.

Safer skies: tackling space debris

Space is getting crowded. With approximately 11,000 satellites currently in orbit and an estimated 50,000 more expected to launch within the next ten years, the risk of collision has never been higher. Moreover, there are over 128 million pieces of space debris moving around the Earth. A single collision could trigger a devastating chain reaction, known as the Kessler effect, potentially rendering vital orbits unusable and cutting off critical satellite services that we rely on for everything from navigation and communication to weather forecasting.

To address these issues, the EU Space Act proposes robust “rules of the road” for space. These measures will include mandatory requirements for the safe disposal of satellites at the end of their operational life, with a general rule for de-orbiting within 25 years. The Space Act will also improve the tracking of space objects to prevent collisions, establishing a clear and predictable framework to protect both new and existing space assets. As Commissioner Kubilius, the first-ever European Commissioner for Space, stated, “It is time for us to have rules of the road in space and safety rules in space. Like 100 years ago it was done with the traffic on terrestrial roads.”

Ensure the safety of space systems against threats

The EU Space Act also mandates a new era of vigilance. All space operators, whether public or private, will be required to conduct comprehensive risk assessments throughout a satellite’s entire lifecycle. This includes implementing stringent cybersecurity protocols tailored to the unique vulnerabilities of space systems and establishing clear procedures for reporting security incidents. By fortifying its space infrastructure, the EU aims to protect the critical services that underpin up to 10% of its economy.

Enhancing space sustainability

The launch, operation, and disposal of satellites have tangible impacts, including CO2 emissions and the proliferation of debris. Therefore, the third pillar of the Space Act focuses on sustainability. The legislation will introduce a common methodology for measuring the environmental impact of space activities across the Union.

This standardised approach will provide consistent and verifiable data, allowing the industry to identify areas for improvement and innovate towards a greener future. It will encourage the development of pioneering technologies such as in-space servicing, where satellites can be repaired, refuelled, or upgraded in orbit to extend their lifespan and reduce the creation of new debris.

Conclusions

The EU Space Act marks a significant step towards regulating space activities at the Union level for the first time. “Today we make history,” Commissioner Kubilius underscored. “The EU Space Act is the first time ever we regulate space activities in the European Union. The frontier is going to become a part of the Single Market, with smart regulation.” The European Parliament and the Council will now negotiate the legislative proposal.

Lead or be led: Ireland’s last chance to compete in a global AI race

As countries around the world race to harness the potential of artificial intelligence, Ireland faces a critical juncture. Urgent, coordinated action across government is needed, not only to seize emerging opportunities but to confront the very real risks that accompany them. That was the stark message delivered this week by Dr Patricia Scanlon, Chair of the Government’s AI Advisory Council and Ireland’s first AI Ambassador, at a hearing of the Joint Oireachtas Committee on Artificial Intelligence.

The urgency could not be starker. Dr Scanlon and fellow experts outlined two converging risks. The first is familiar: the societal risks posed by AI, from job displacement and privacy erosion to algorithmic bias, threats to fairness and human dignity, and the disruption to creative rights.

The second, and perhaps more insidious, is the risk of inaction. Without decisive adaptation, Ireland risks stalling innovation, undermining its competitiveness, and becoming shaped by this digital transformation, rather than shaping it. This warning is all the more timely given the latest World Competitiveness Rankings from the Institute for Management Development, which saw Ireland drop to seventh place, a notable decline that underscores the urgent need for strategic policy and investment in future-facing sectors like AI.

Chaired by Fianna Fáil TD Malcolm Byrne, the Committee heard that Ireland has the potential to become Europe’s preferred base for AI development, supported by strong foundations such as an educated workforce,  robust research capacity and a significant multinational presence. This view is echoed in a recent report from Microsoft and Trinity College Dublin, The AI Economy In Ireland 2025, which positions AI as a major economic driver over the next decade. The report’s economic analysis underscores that Ireland is strongly positioned to capitalise on this emerging technology, driving innovation, boosting productivity, and securing a competitive edge in the global digital economy.

The report estimates that AI adoption could contribute at least €250 billion to the Irish economy over the next 10 years. Moreover, it highlights that with the right enabling environment and a coherent set of supportive policies, Ireland could unlock an additional €60 billion in economic value, reinforcing the case for timely and strategic investment in AI infrastructure, skills and regulation.

What’s next

The choices Ireland makes now will determine its position in the rapidly evolving global AI landscape. With clear opportunities for driving economic growth and innovation, alongside significant risks that could arise if left unaddressed, the time for decisive and coordinated action is now.

EU Member States back Critical Medicines Act, but diverge on priorities

On Friday (20 June), the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) met to discuss several health topics. The Critical Medicines Act was the first item to feature on the agenda. This marked the first formal exchange of views among Member States on the proposed legislation. While Health Commissioner Olivér Várhelyi signalled a commitment to bringing the Act to completion by the close of the year, the incoming Danish Council Presidency has indicated it does not anticipate concluding negotiations within that timeframe.

Some Member States perspectives are as follows:

–Ireland expressed support for the CMA’s industrial policy goals but emphasised that reshoring manufacturing is insufficient to guarantee supply security. Irish Health Minister, Jennifer Carroll MacNeill, welcomed elements related to international partnerships and enhanced coordination mechanisms with the European Medicines Agency (EMA), including the MSSG and SPOC. However, she cautioned against adding administrative burdens on companies and called for a careful balance between joint procurement frameworks and national reimbursement systems.

–France emphasised the importance of integrating environmental criteria into public procurement and advocated for financial incentives to enhance production capacity. French Health Minister, Geneviève Darrieussecq, noted that while the legislation encourages Member State financing, it lacks clarity on how.

-Czechia called for stronger European coordination to prevent insufficient public spending, as well as more coordination in stockpiling and voluntary procurement.

-Spain supported the proposal, particularly its focus on joint procurement, which it believes will enhance the EU’s collective purchasing power.

–Italy welcomed efforts to improve local production of critical medicines and cautioned against procurement decisions solely on price.

–Belgium stressed the need to accelerate the vulnerability analysis and need to ensure there is adequate funding available.

–Germany highlighted the need for production incentives within the EU and expressed concern that the proposal does not take generic medicines enough into account.

–Cyprus voiced its strong support for collaborative procurement as well as the MEAT criteria. Additionally, Cyprus recommended broadening the scope of collaborative procurement from 9 to 3 Member States as well as broadening it to include any medicines that Member States are having access challenges to.

The initial reactions from Member States to the Critical Medicines Act reflect a broad consensus on the importance of strengthening pharmaceutical resilience within the EU but also reveal differing national priorities. However, joint public procurement, EU-level coordination, and adequate funding appear to be a priority for all.

Compliments of Vulcan Consulting – a member of the EACCNY