Angelo Pagliara is a EESC member and rapporteur for the EESC opinion on the EU space act. Here, he gets us up to speed with the challenges and the opportunities experienced by the European space economy
The space economy is now one of the major frontiers of global growth; according to the Draghi report, its value could exceed €1.6 trillion by 2035, with an annual growth rate of over 9%, driven mainly by space-based services and applications in strategic sectors.
Against this backdrop, the European Union (EU) faces the twofold challenge of closing the gap with its major global competitors and addressing the European space sector’s continued internal fragmentation. To address this challenge, the European Commission put forward a proposal for an EU Space Act last June, which was well received by the European Economic and Social Committee (EESC) in its opinion adopted on 4th December 2025.
The EESC recognises that the regulation aims to strengthen the sustainability, resilience and safety of European space activities, and endorses its objectives, highlighting the central role of a competitive internal market for the industrial base, innovation and quality employment in a sector that is strategic for the future of the EU.
At the same time, the Committee stresses that the success of the EU Space Act cannot rest solely on regulation and recommends that European public investment in space be strengthened immediately and structurally. Achieving the goals set out in the proposal will require additional financial instruments, as well as an industrial and technological strategy that can maximise the economic and social returns for Europeans and prevent regulation from merely increasing red tape for operators.
EU Space Act recommendations
The EESC supports the general approach of the proposal for a regulation, but recommends that more detailed explanations be provided regarding the use of Article 114 TFEU as the legal basis, to ensure that the regulation effectively contributes to achieving the EU’s strategic objectives within the European legal and policy framework. In parallel, it suggests introducing a clause stipulating that the provisions of the Space Act must be interpreted in the light of the Member States’ existing international obligations in relation to space activities, in particular those stemming from the 1967 Outer Space Treaty.
With this in mind, the EESC points out that referring solely to the State of establishment of the operator, as provided for in the current proposal, could lead to uncertainties in interpretation and divergences from international law, which instead uses the criterion of the State of nationality and, in the case of launch activities, the territory from which the activity is conducted. Integrating both criteria would meet requirements regarding regulatory clarity, judicial protection, and the proper distribution of responsibilities, avoiding potential cross-border disputes and facilitating coordination with existing national legislation, such as the Italian Space Law of 2025 and the Portuguese Space Law of 2019.
Concerning the national authorisation and registration regimes for space activities, governed by Title II of the proposal for a regulation, the EESC acknowledges the overall balance of the legislation, which aims to harmonise minimum standards on safety, resilience and sustainability, but highlights the need for some grey regions to be clarified to ensure legal certainty and uniform application of the rules.
Specifically, clarifications are needed regarding how the derogations will operate, the scope of the procedural flexibility, the authorisation timelines, the applicability to non-commercial missions, the Commission’s inspection powers, and the distribution of operational responsibilities between the ESA and the EUSPA. Here, strengthening the principle of mutual recognition of authorisations granted by Member States is crucial to avoiding regulatory fragmentation, preventing duplicate or divergent procedures and avoiding the risk of forum shopping, thus ensuring a level playing field for all operators in the internal market.
The EESC also recommends establishing precisely the limits within which Member States may impose more stringent requirements for reasons of safety, resilience and environmental sustainability, in order to avoid any distortion of the internal market, and suggests exploring the possibility of setting up, in coordination with the EUSPA, a European one-stop-shop for authorisations and registrations that could streamline procedures and at the same time ensure compliance with the common standards.
The EESC opinion explicitly links the space strategy to European strategic autonomy. In a global context of increasing competition and considerable regulatory and industrial asymmetries, access to the European space market should be guided by the principle of reciprocity with non-EU countries, to ensure equivalent access conditions and the respect of European standards.
Industrial policies should therefore focus on consolidating strong European players and avoiding excessive fragmentation of the sector. When it comes to participation in strategic and dual-use programmes, priority should be given to accredited operators subject to cost-control mechanisms and full compliance with social and environmental requirements.
The EESC also welcomes the introduction of a system for calculating and verifying the environmental footprint of space missions, considering it an important step towards making the sector more sustainable, but stresses the need for it to be implemented in a proportionate manner, safeguarding the sector’s competitiveness, its strategic capabilities and technical expertise, and advancing circular economy solutions where possible.
In the EESC opinion, particular attention is paid to the role of European SMEs and start-ups, which are an essential element of the space innovation ecosystem and should be supported through tailored measures and facilitated access to European funds, subject to compliance with social and employment sustainability criteria.
The development of the European space economy
Finally, the EESC stresses that the development of the space economy requires an integrated strategy for skills and jobs. As the space sector has considerable potential to create skilled jobs and attract young talent, the Committee proposes that a European Space Skills Agenda be adopted, based on partnerships among social partners, schools, universities, and space agencies.
With this in mind, the EESC stresses that if the operational role of the EUSPA is to be strengthened, as provided for in the Space Act, this must be backed by an adequate allocation of resources in the next Multiannual Financial Framework 2028-2034, so that the ambitious objectives of the regulation can be translated into real operational capabilities and tangible benefits for the economy and society across the EU.
