"The 21st century will be the century of space." With these words, Andrius Kubilius, EU Commissioner for Defence and Space, presented the draft for an EU Space Act on 25 June 2025.
According to experts, the space economy has a potential of 1.8 trillion US dollars over the next ten years. However, recent growth in the sector is almost exclusively attributable to programmes from SpaceX and China. The European space industry has been lagging behind since the decline in commercial demand after its peak in 2017 and due to a lack of military spending. According to Kubilius, this is now set to change: "Europe must be at the forefront." The EU Space Act is intended to create the necessary legal framework for this.
The sector has always been a driver of innovation. To not only promote technological progress but also to secure the global competitiveness of the European space industry and reduce costs, a uniform regulatory framework is required. The Space Act is intended to replace the 13 different national space laws within the EU to date, thus providing greater planning and investment security for companies.
Three Main Pillars
The law rests on three main pillars: Safety, Resilience and Sustainability. The focus is on measures to limit space collisions and space debris, increasing cybersecurity to protect against digital and physical threats, and better tracking of the environmental consequences of space activities. At the same time, an EU-wide internal market for space-based data and space services is to be created (Art. 1(1) draft EU Space Act) to facilitate cross-border growth for European companies.
EU Space Act and German Space Act: Unity or Diversity?
In September 2024, the German Space Act also briefly gained momentum when the then federal government published the key issues paper, which was intended to form the guardrails for a future German Space Act (WRG) and serve to implement Germany's obligations under international law. The current draft of the EU Space Act allows for a direct comparison of national and European regulatory approaches for the first time:
Scope
With its European focus, the EU Space Act applies to all commercial providers operating in the Union – including those from third countries offering their services in Europe. Excluded from the regulation are, among others, space objects used exclusively for the purpose of defence or national security (see Defence and national security) or objects that will be launched before 1 January 2030 (Art. 2(3)(a), (d) draft EU Space Act). In contrast, the WRG is nationally oriented. According to the key issues paper, it is aimed at German players (natural and legal persons) and launch facilities or space activities whose launch has a territorial connection to Germany. State and intergovernmental actors – such as ESA, EU or NATO – are exempt from its scope of application.
Competence and Authorisation Procedure
The EU Space Act provides for the decentralised implementation of authorisation procedures by national authorities (Art. 6(1) draft EU Space Act), which are, however, under the supervision of the European Commission and the EU Agency for the Space Programme (EUSPA). These also receive registration tasks. This is intended to ensure uniform implementation in the Member States. In contrast, according to the key issues paper, competence in the WRG lies centrally with a national authority within the portfolio of the Federal Ministry for Economic Affairs and Climate Action (BMWK). The granting of authorisations only occurs in "agreement" with other participating federal ministries that register a review interest.
Liability and Recourse
The EU Space Act focuses on preventive measures and high safety and operational standards to avoid damage as far as possible. A liability cap is not foreseen in the draft – a harmonisation of liability limits at EU level is therefore still pending. Within the framework of the WRG, on the other hand, a clear financial limitation is planned: the state's right of recourse against the operator – for example, in the case of state liability under international law – is limited to a maximum of 50 million euros or 10% of the annual turnover. Civil liability towards third parties, however, remains unlimited.
Sustainability and Environmental Standards
In the area of environment and sustainability, the draft EU Space Act sets binding standards: it prescribes the mandatory implementation of a standardised "Life Cycle Assessment" (LCA) for every space mission and already contains specific technical requirements in the regulation text for the reduction of space debris and light pollution. The key issues paper of the WRG is more reserved here: although it formulates a general duty of care for the sustainable use of space and for the avoidance of pollution, specific technical requirements are to be specified by legal ordinances at a later date.
Cybersecurity and Resilience
Cybersecurity is to become a central component of the EU Space Act. The proposal for a regulation provides for the establishment of a standalone cybersecurity framework for the space sector, which will function as a "lex specialis" to the NIS2 Directive. The draft contains detailed requirements for risk management, incident reporting and supply chain protection. This aspect is mentioned in the key issues paper of the WRG but not further detailed. Here, too, the key issues paper provides for the details to be regulated later by legal ordinance.
Defence and National Security
The draft EU Space Act explicitly excludes activities that exclusively serve defence or national security purposes from its scope. Although the expansion of so-called "dual-use" capabilities is promoted within the framework of the EU's strategic vision, the proposal for a regulation itself does not provide for direct access to private-sector systems. The key issues paper of the WRG is different: it enables the German Armed Forces (Bundeswehr) to request the "provision of services" from private operators for defence purposes.
Further insights into the key issues paper of the WRG and whether it meets the high expectations can be read here.
The Roadmap
The Commission will first submit its proposal for a regulation on the EU Space Act to the European Parliament and the Council of the European Union for deliberation. Only then will the opinion-forming process begin in the two legislative bodies. Deliberations in the European Parliament began as early as September 2025. Additionally, the European Parliament Research Service (EPRS) published a detailed briefing and a status page on the Space Act. This will be followed by negotiations between the Parliament and the Council. Art. 119 of the draft EU Space Act provides that the provisions will apply from 1 January 2030 and will be directly binding on all Member States. The EU Space Act thereby lays down a common minimum standard but leaves Member States scope to go beyond these requirements.
Germany’s new federal government is also assigning increasing strategic importance to space. Following the failure of the WRG amid the collapse of the "traffic light" coalition in November 2024, the new government of CDU/CSU and SPD defines space as a future and key technology in its coalition agreement. The government has set itself the goal of expanding the national space programme and presenting a national space security strategy within the first year of government. According to the coalition agreement, the EU Space Regulation is to be "implemented swiftly".
