PPI Warns EU Space Act Could Stall Innovation and Raise Costs Across the Space Industry

November 3, 2025
Mary Guenther

WASHINGTON — The Progressive Policy Institute (PPI) today released formal comments on the European Commission’s proposed EU Space Act, authored by Mary Guenther, PPI’s Head of Space Policy. In the official filing, Guenther warns that the draft legislation risks slowing innovation, raising costs, and undermining Europe’s ability to compete in the rapidly expanding global space economy.

“Europe’s goal of streamlining space regulation is the right one,” said Guenther. “But as currently written, the EU Space Act would impose layers of new compliance burdens that make it harder — not easier — for European and transatlantic space companies to thrive.”

PPI’s submission identifies several key concerns with the proposal:

Regulatory overload: Extensive new requirements could increase satellite manufacturing and launch costs by as much as 30%.
Feasibility gaps: Some provisions, such as strict light pollution limits and whole-of-mission environmental impact calculations, are not yet technologically feasible.
Trade barriers: By imposing disproportionate obligations on non-EU companies, the initiative risks functioning as a non-tariff barrier that limits cooperation with U.S. partners.

Guenther recommends that the European Commission dramatically simplify the Act or replace binding mandates with support and incentive-based measures.

“A strong and innovative European space sector strengthens the entire Western alliance,” Guenther added. “The EU should focus on enabling growth and collaboration, not creating red tape that stifles progress.

PPI’s full comments on the EU Space Act are available here.

Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us @PPI.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org