EU competitiveness ministers debated the proposed EU Space Act on 29 May 2026, with the Cypriot presidency presenting a progress report that highlighted unresolved issues on dual-use activities, governance structures, and avoiding duplication of national procedures. The Act aims to harmonise rules for space activities, enhance safety and sustainability, and boost EU 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 that respects 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.
The Council took note of the progress report; work will continue under the Irish presidency. The debate revealed a split between member states favouring strong EU-level harmonisation (Denmark, Commission) and those prioritising national security exemptions and lighter-touch rules (France, Italy, Germany). The outcome will affect EU space operators, especially SMEs, which could face compliance costs under a broad scope, while third-country operators may face new equivalence requirements. National space agencies and defence ministries stand to gain from preserved prerogatives, while the EU's competitiveness in the global space sector could benefit from harmonised rules if duplication is avoided.