Clear EU-wide regulations and national laws are necessary to promote NewSpace innovations. What is the status quo here?
The space economy is booming. More and more players are entering the market and ever larger sums are being invested – the financial potential seems limitless. And so, too, do the hopes: Space technologies are seen as the key to overcoming global challenges such as communication, climate change and a sustainable energy transition.
This makes it all the more surprising that, of all areas, this highly innovative area is lacking a strong legal framework. While the EU regulates almost every step a company takes on Earth, there is often legal uncertainty in space. Although the 1967 Outer Space Treaty provides a basic framework under international law, it dates back to a time when space travel was organised exclusively by the state and primarily regulates intergovernmental principles such as the prohibition on the appropriation of outer space or the obligation to use it for peaceful purposes. It therefore does not provide a legal framework for today's non-governmental NewSpace players, who have to make concrete investment and operational decisions. In addition, the implementation of rules governing the liability of private actors requirements arising from international treaties, for example, has always been neglected in Germany. This has consequences, because for start-ups and companies, it means risk: If they don't know where they stand legally, they will hesitate when it comes to the implementation stage. The result is inhibited innovation.
EU legal framework for space in the starting blocks
This problem is by no means new. The EU announced its intention to present an EU Space Act a few years ago. Among other things, the law is intended to regulate the safety of space activities, sustainability and physical and digital threats. The launch was originally planned for 2024. After some delay, the Commission's draft has now been available since 25 June 2025. One thing is clear: EU-wide regulations are not only desirable, but urgently required. Although the EU Space Act is designed as a regulation that applies directly in the Member States, it is in many respects a framework. National legislators are therefore still required to create their own legal bases within this framework or to expand existing ones. In particular, liability issues and licensing procedures fall within the remit of national legislators. In this respect, the EU Space Act will hopefully provide an impetus for Member States to take action. In Germany, previous governments were already involved before the publication of the draft EU Space Act, and the topic has also found its way into the 2025 coalition agreement 2025 of the CDU/CSU and SPD.
German space policy: Coalition agreement promises progress
In Germany, the first draft of a national Space Act (WRG) was discussed in 2024. What was intended as progress was met with widespread rejection. According to a survey of the Federation of German Industries (BDI), 70 % of the start-ups surveyed rejected the draft. The criticism was clear: too much bureaucracy, excessively far-reaching powers for the German Armed Forces – especially in crisis situations – and the prospect of a new authority that would incur additional costs and put further strain on the already limited space budget. At the same time, the lack of binding guidelines was also criticised, as there is no reliable framework for many issues.
The political situation in Germany has now changed fundamentally. The bill was shelved when the so-called “traffic-light coalition” came to an end in December 2024. However, the issue remains relevant, with the new German government expressly addressing it in its coalition agreement of April 2025. Space travel is recognised as a key technology of the future that needs to be strengthened. The clear aim is to establish Germany as a leading space nation. Specific plans include a launch platform in the North Sea and the expansion of the ESA Moon Control Centre in Bavaria. The security policy significance of space is also emphasised. It remains to be seen whether and how these ambitious plans will be implemented. A look beyond Germany's borders shows: Other countries are already ahead.
National space laws in Europe: France and Luxembourg lead the way
With the French Space Operations Act (FSOA), France has had the most comprehensive national space law in Europe since 2008. The FSOA pays particular attention to the challenges posed by space debris and sustainable use, thereby creating a clear and reliable legal framework, especially for private players in the NewSpace scene. Spain and Poland are also currently working on national regulations.
However, Luxembourg attracted particular attention when it entered into an agreement on space resources with the USA in 2024. This agreement regulates the exploration and extraction of resources in space for a period of ten years. The aim is to facilitate joint projects and promote the exchange of data, technologies and educational initiatives. Luxembourg was the first and so far only European country to legislate the extraction of space resources back in 2017. This is a strategic move, as these raw materials will be in high demand in the future: Metals from the platinum group, such as platinum, rhodium and iridium, are essential for electronics, medical technology and renewable energies. You can find out more about this topic in our blog: Space mining: breach of international law in space?
Conclusion: Political course for space and the NewSpace economy to be set imminently
A look at the European continent as a whole shows that while some countries are leading the way, others are lagging behind. For Germany and the EU, this means that the next logical step is of a political and legislative nature.
The draft EU Space Act and national laws such as the German Space Act must not only be designed to be ambitious and innovation-friendly, but also practical. If Europe does not want to fall behind in international competition, it needs legal certainty. The coming months will show whether the announcements will become concrete draft laws and how they will be implemented.
We will keep you up to date in our blog series on CMS Space Law with the latest articles on this topic. You can find further information on our Insight page "NewSpace and Space Law".
