Creating a 'true single market' in orbit: What should we expect from Europe's new space law?

The European Union is proposing a draft space law to create "a true single market" in orbit.
The European Union is proposing a draft space law to create "a true single market" in orbit. Copyright Canva
Copyright Canva
By Anna Desmarais
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The European Commission told Euronews Next that they expect to propose a European space law sometime in April.

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Europe is on the verge of a new frontier with the creation of a possible new space law.

The European Commission is set to adopt a European Space Law (EUSL) sometime this month, a Commission spokesperson told Euronews Next.

The law, if passed, would regulate the ongoing developments in space, including traffic management, sustainability and cybersecurity.

Euronews Next takes a look at why this law is being proposed and what could be coming in the draft.

Why propose a new space law?

The European Commission has been working towards a space law for years.

The European Union started in 2021 with the launch of the EU Space Programme, a grouping together Europe’s many projects in space, including Copernicus, the Earth observation programme, and Galileo, Europe’s solution for GPS navigation from space.

In 2022, the bloc got even more involved in space. Early in the year, it recognised that space is a strategic domain and, in tandem, developed a strategic compass called the EU Space Strategy for Security and Defence to defend the continent’s interests in space before 2030.

The strategy mentions for the first time the possibility of an EU space law to "provide a common framework" between countries.

At the same time, a group of European space ministers adopted conclusions about an approach to space traffic management, a policy issue that they describe as a priority because of the amount of debris in space.

The European Council estimates that more than one million pieces of debris are currently orbiting the Earth and that this debris could damage or destroy European satellites currently in operation.

The creation of the space programme IRIS2 means there will be hundreds more European satellites going into orbit in the next few years.

Developing an EU space law was also included in Commission President Ursula von der Leyen’s priorities for 2024.

What could be in the law proposal?

The raison d'être of the EU space law is to create a "true single market" for space, according to Thierry Breton, the European Commissioner for the Internal Market.

There are 11 European countries with national space laws, including Belgium, France, Germany, Russia and Ukraine, according to the European Space Agency.

Breton said these "diverse" national laws are a "fragmented approach [that] prevents us from acting as a bloc with the necessary size to matter".

[The EU Space Law] is also a matter of security as in the current geopolitical context, the protection of our space system from systemic security risks is a must.
Thierry Breton
European Commissioner for the Internal Market

The proposal will work on three pillars: safe satellite traffic to avoid "increasing risk of collisions," protecting the EU infrastructures against cyber attacks and building Europe’s space sector as an "important enabler of services," according to the Commission’s website.

The law could set minimum requirements for all space systems specifically on anti-collision, have regulations around how and when satellites could be taken down from orbit, and could include ways to mitigate cyber security risks.

"[The EU Space Law] is also a matter of security as in the current geopolitical context, the protection of our space system from systemic security risks is a must," Breton added.

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On sustainability, the government said in its call for evidence that so far, the European Union does not have a viable way to measure the environmental footprint of space activities, including the emissions produced by space companies.

That means space companies might not be complying with other EU regulations on the environment.

According to a report in Politico, the draft law could include standards to curb light pollution and a label for companies.

None of the regulations that will be put in the new law will "limit EU’s innovation and the potential of European startups," according to Breton.

Creating new markets

Matija Rencelj, research manager at the European Space Policy Institute, said the new law is welcome so long as it considers what it could add to the laws that individual member states already have.

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"There have been comments by Commissioner [Thierry] Breton about the need for a single market space, we need to assess that gap in terms of are we far away from a single European market," Rencelj said.

"What is important for us is to see how a space law can act as a conducive force towards… creating new markets".

Space is a domain where there are a lot of opportunities that still remain to be exploited. A new space law can act as an important element that would enable Europe to benefit from all that.
Matija Rencelj
Research Manager, European Space Policy Institute

So far, Rencelj said certain parts of the European space market, like the satellite market, are not fragmented so much as dominated by a single player.

"We are not shying away from the idea that competition should be increased," Rencelj said.

This is a view shared by Eurospace, the trade association of the continent’s space industry.

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In their submission to the Commission, they wrote that the space law should prioritise creating a stable legal framework for the bloc’s space activities that will, in turn, bring more investment and innovative research to the region.

"Industry expects the future legislative proposal to… not risk fragilising its good position on the open markets," their submission reads.

Eurospace proposes that the law give preference to European companies that are looking to operate within the EU zone to protect them from "additional costs" that non-European actors might not have to face if the new law is put in place.

If done correctly, Rencelj said the new space law could be promising for all Europeans.

"Space is a domain where there are a lot of opportunities that still remain to be exploited," he said.

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"A new space law can act as an important element that would enable Europe to benefit from all that," he added.

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