EU competitiveness ministers on 29 May 2026 debated the proposed EU Space Act, with the Cypriot presidency presenting a progress report that revealed persistent divisions on dual-use satellite regulation, governance structures, and the administrative burden on small and medium-sized enterprises (SMEs). The Act aims to harmonise rules for space activities, enhance safety and sustainability, and boost competitiveness.
Commissioner Andrius Kubilius stressed the need for minimum harmonisation of governance to enable mutual recognition and equal technical requirements for dual-use satellites. Germany called for a proportionate, risk-based framework respecting existing standards. Poland emphasised support for SMEs and security safeguards. France insisted on respecting member states' national security prerogatives and a level playing field with third-country operators. Denmark advocated broad application of requirements with exemptions only for clear defence use, and flexible governance with member states in the lead. Italy warned against centralisation, excessive burden on SMEs, and called for international standards and a clear equivalence regime for third countries.
Key open issues include the scope of dual-use activities, governance structures, and avoiding duplication of national procedures. The Council took note of the progress report; work will continue under the Irish presidency.
The Act's final shape will affect EU space operators (especially SMEs facing compliance costs), national space agencies (seeking to retain authority), third-country operators (facing potential equivalence requirements), and the broader EU space industry (benefiting from harmonised rules but wary of added bureaucracy). The debate reflects a trade-off between EU-level harmonisation for competitiveness and member states' national security and industrial autonomy.