EU Space Act? Experts spot loopholes in important regulation

The Chamber considers it a necessary step towards creating a safe and predictable legal framework for the dynamically developing space sector in the EU.

Growing international unrest should force changes

As we read in the KIGEIT press release, the Chamber is observing with concern the escalation of international tensions, especially the increased risk of aggressive actions by Russia and the growing uncertainty about the future directions of the policies of strategic partners.

Consequently, the Chamber believes that building independent and sovereign capabilities in key areas of critical infrastructure, especially satellite communications and Earth observation, is becoming imperative. Given that the share of European solutions in the global satellite market remains low , it is essential to focus on catching up in the areas of defense and secure communications for government administration and critical infrastructure.

According to KIGEIT, the regulatory proposals do not sufficiently take into account the security needs arising from a potential armed conflict, as well as the possibility of using all resources, both civilian and military.

Therefore, it is crucial that environmental protection elements are limited in solutions that are crucial for defense and security, especially in the area of ​​the eastern flank of the European Union.

• Security and sovereignty : Focus on catching up in the area of ​​defense and secure connectivity for government communications and critical infrastructure.
• Situational awareness : equipping satellite systems with elements of situational awareness from the autonomous position of space objects. This approach is crucial for increasing safety and operability in space.
• Support for small and medium-sized enterprises (SMEs) : The EU Space Act provides funding for SMEs. However, due to the complexity and specificity of solutions in the space sector, SMEs should be effectively supported by entities with the necessary experience and resources.
• Capacity of national administrations : introducing mechanisms to equalise capacity for all member states.

The EU as a global player in space governance

KIGEIT fully agrees with the assessment that the proposed act is an important strategic step towards leveling the playing field in the EU , while positioning the EU as a global player in space governance. However, to achieve this goal, the organization believes that the following issues must be taken into account:

• Defining defense and secure communications criteria that limit or exclude environmental requirements. Excluding only MILSAT solutions is not adequate in the current situation.
• There is a risk that the lack of adequate administrative and technical capacity in national authorities in some Member States may delay the implementation of the rules , which will negatively impact the competitiveness of national operators.
• Current regulations are risk-based but lack minimum technical guidelines . A cybersecurity certification scheme for space systems is needed. These guidelines could identify recommended situational awareness subsystems and define standards for information exchange.
• Technologies for servicing and removing debris remain capital-intensive and high-risk . A method for settling and collecting fees from entities generating satellite debris should be established. Additionally, financial incentives could be introduced to accelerate development and increase the competitiveness of the EU industry.
• Fragmented data and reporting delays undermine collision avoidance effectiveness . Standard data formats and interoperability protocols for situational awareness systems should be defined and near-real-time data exchange required.
• The oversight and enforcement mechanisms for non-EU operators are unclear . Mandatory requirements for such operators should be introduced, including reciprocity conditions and security verification procedures.
• In order to avoid subjective interpretations, it is necessary to quantify the criteria (e.g. turnover, number of satellites) that qualify an operator for more lenient regulatory treatment.
• The creation of an EU space licensing office would facilitate procedures by acting as a one-stop shop, especially for startups and cross-border operators.
• introducing a dispute resolution mechanism would help establish a structured process for resolving disputes between operators and regulators.
• Effective mechanisms supporting the development of potential and national independence for this region should be defined, proportionate to the existing risk.
• should be supplemented with a mechanism supporting cooperation and exchange of experiences with other entities, in particular with entities with confirmed competences.
• Since Article 189 TFEU constitutes a lex specialis in relation to Article 114 TFEU, it is important to remain open to alternative means of harmonisation, such as enhanced cooperation mechanisms based on Article 20 TEU.

According to KIGEIT, regulations should support, not restrict, the development of sovereign capabilities , and also take into account the need for effective support for SMEs by experienced partners.