The Proposal for a New EUSPA Regulation: Key Changes, Practical Effects, and Recommended Actions for Stakeholders

On 7 April 2026, the European Commission published its proposal for a new "Regulation on the European Union Space Services Agency and amending Regulation (EU) 2021/696" (COM(2026) 152, procedure 2026/0084(COD)). The proposal is closely linked to the draft EU Space Act, which is currently being discussed at the level of the European Parliament. Together, these two initiatives form a comprehensive regulatory package that will reshape the landscape for space activities in Europe. 

While HEUKING has in numerous iterations of publications, workshops and webinars, assessed the content and effects of the draft EU Space Act, this newsletter now focuses on the proposal for a regulation of the European Union Space Service Agency (new name used) itself.

Background: The European Union Space Agency (EUSPA or the Agency) has outgrown its original mandate. Additional tasks and responsibilities were conferred upon it by Regulation (EU) 2023/588 on the European Union Secure Connectivity Programme, and further expansion is foreseen under the proposed European Competitiveness Fund (ECF) Regulation for 2028–2034. The EUSPA currently supports the operation and exploitation of Galileo and EGNOS navigation services, manages security accreditation of EU space components, promotes downstream market development for Copernicus (Earth observation), operates the GOVSATCOM Hub and the EU Space Surveillance and Tracking (SST) Front Desk, and has assumed responsibilities regarding IRIS².

Broader Strategic Context: Mario Draghi's report on the future of European competitiveness highlighted how the European space economy faces critical challenges, including lower public investment compared to the US and China, supply chain dependencies, and regulatory fragmentation. The Commission has also explicitly described the regulation as part of Europe's pursuit of "space readiness," a concept prominently featured in the March 2025 White Paper for European Defence Readiness 2030. 

Connection with the envisaged EU Space Act: In parallel, the EU Space Act, proposed as a first draft  the Commission on 25 June 2025, aims to create a unified legal framework for the authorisation, registration, and supervision of space activities, with the EUSPA serving as a key implementation body with multiple tasks. Both legislative initiatives together form a comprehensive regulatory package: the Space Act harmonises the rules applicable to space operators, while the EUSPA Regulation provides the institutional architecture for enforcement and service delivery. 

Legislative Status: The legislative process now moves to the European Parliament and the Council under the ordinary legislative procedure. If adopted, the new regulation is intended to apply from 1 January 2028.

I. High-Level Summary of Material Changes

The proposal introduces several material changes that together transform the character of the EUSPA from a programme-implementation vehicle into a permanent, operationally significant EU space services agency.

Renaming: The agency will be renamed from the "European Union Agency for the Space Programme" to the "European Union Space Services Agency," while retaining the well-established EUSPA acronym. 

Expanded Operational Mandate: The proposal divides the EUSPA's tasks into three categories: 

• own tasks, that the agency performs autonomously (security accreditation, operational security of PNT and EO, space security monitoring); 
• tasks delegated by the Commission (management of PNT exploitation, GOVSATCOM Hub operation, downstream market development), EU Space Act tasks; and 
• tasks to be delegated subject to operational readiness, including Earth Observation Governmental Service (EOGS), IRIS² governmental services, space weather, space surveillance and tracking, radio-frequency interference monitoring, and support for space commercialisation.

Governance Reforms. The organisational structure (Administrative Board, Executive Director, Security Accreditation Board) is retained but enhanced.

Budget Increase. The Union contribution rises from EUR 525.7 million for 2021–2027 to EUR 979.6 million for 2028–2034, nearly doubling the fix available financial resources.

Fee-Based Revenue. A new provision in Art. 25(3e) allows the EUSPA to charge fees for services rendered, with the legal basis for fee collection to be established by the EU Space Act. 

Digital and AI Compliance. A "Digital Annex" obliges the EUSPA to align its digital solutions with the EU AI Regulation, the Cybersecurity Framework, the eIDAS Regulation, and the Single Digital Gateway Regulation, with consequences for contractors providing digital services to the agency.
Continuity Obligations for Contractors. Article 4(7) requires the EUSPA to ensure that its contractual operators maintain competency frameworks, succession planning, and operational capability to ensure service continuity during crises or extended disruptions. 

Transitional Provisions. The new EUSPA shall continue operations and activities of the current agency in respect of all ownership, agreements, legal obligations, employment contracts, financial commitments, and liabilities. The new regulations and the transitional period until new regulations will actually have effect are arguably the most challenging effects for the EUSPA in the coming years.

II. Material Practical Effects

1. Near-Doubling of the Agency's Budget

The proposed increase from EUR 525.7 million to EUR 979.6 million represents a clear signal that the Commission envisions a materially larger and more capable agency. The budget increase is linked to both the continuation of current tasks and the financing of new activities under the expanded mandate. For industry participants, this translates directly into a larger addressable market for EUSPA-managed contracts and procurement opportunities.

2. Role under the EU Space Act

The EUSPA Regulation must be read together with the proposed EU Space Act, which assigns the agency central responsibilities for supervising compliance by EU-owned asset operators and third-country space service providers:

• under the Space Act, the EUSPA would manage the URSA, issue electronic certificates of compliance (e-certificates), and conduct technical assessments that form the basis for Commission authorisation decisions
• authority responsibilities of the EUSPA regarding EU own assets
• at least in the 2025 draft, an EU Space Label system
• crisis exemption and other easement or derogations decisions
• NIS2 and CRITIS similar implementation measures and interplay questions
• connection and cooperation with ESA and Institutions
• enhanced capacity building specifically regarding the requirements regarding the EU Space Act
• a number of further, yet unclear, areas of responsibility under future delegated acts.

The EUSPA would also be empowered to open investigations in the event of serious indications of infringement of the Space Act's technical requirements and to propose fines to the Commission.

3. Crisis Management and Operational Continuity Framework

The proposal introduces a crisis management responsibility that is novel for an EU decentralised agency of this type. Once a crisis is declared, the Executive Director of EUSPA gains authority to impose operational measures on staff and to activate business continuity procedures. Staff from Member States may be deployed for up to two years to address urgent situations or peaks of work. This framework requires the EUSPA to be 24/7 operational entity rather than a policy secretariat.

4. Enhanced Security Accreditation Authority

While the Security Accreditation Board (SAB) remains autonomous within the agencies, several procedural innovations streamline its decision-making. A single approval may now cover entire satellite constellations rather than requiring individual assessments. The Commission may request a decision within three months in duly justified cases; if no decision is adopted within that timeframe, it shall be deemed affirmative. This "silence is consent" could significantly reduce the time-to-market for new space systems and constellation deployments.

5. Digital Compliance and AI Regulation Alignment

The Digital Annex represents a significant regulatory extension into the technology governance sphere. By requiring the EUSPA to align its digital solutions with the AI Regulation, the EU Cybersecurity Framework, eIDAS, and the Single Digital Gateway, the Commission creates cascading compliance requirements for the agency's digital service providers and contractors. Companies supplying AI-powered analytics, cybersecurity tools, or digital infrastructure to the EUSPA must anticipate heightened compliance expectations, including conformity assessments under the AI Regulation for high-risk AI systems used in security-critical applications.

6. Fee-Based Revenue Model

The introduction of a fee-based financing mechanism in Article 25(3e) signals a shift toward partial cost-recovery for EUSPA services. While the precise fee structure and applicable services will be defined through the EU Space Act, this provision opens the door to registration fees, compliance certification charges, and service delivery fees that could affect space operators and data providers interacting with the EUSPA. Initial third-party estimates show a very broad range, without any concrete basis yet. The fee-based model, however, may create additional cost considerations for small and medium-sized enterprises and start-ups seeking access to the EU space market.

7. Contractual Business Continuity Requirements

Article 4(7) introduces a novel obligation for the EUSPA to ensure that its contractual operators maintain robust competency frameworks, succession planning, and operational capability sufficient to guarantee service continuity during crises or extended disruptions. For companies contracting with EUSPA, this translates into concrete contractual requirements for business continuity management (BCM) and disaster recovery plans.

8. Expanded Geographic and Organisational Footprint

Prague remains the agency's seat, but the proposal provides clearer legal backing for the establishment of local offices in Member States and the placement of staff at ground infrastructure centres across the EU. For host Member States, this may create opportunities for local economic development and specialised workforce requirements tied to space operations.

9. Interaction with the ESA and Clarification of Institutional Boundaries

The proposal implicitly addresses the long-standing institutional boundary question between the EUSPA (an EU agency) and the European Space Agency (an intergovernmental organisation). The EUSPA is positioned as the operational arm responsible for service delivery, security, market development, and user-facing functions, while the ESA retains focus on research, development, and technical oversight.

10. Commercialization and Facilitation

The proposal creates significant new opportunities for companies active in the “New Space” sector – start-ups, scale-ups, and innovative SMEs developing commercial space applications, downstream services, and space-derived data products. Article 4(3)(l) explicitly tasks the EUSPA with supporting the implementation of the “Space commercialisation and space economy” Union space component, including continuation of the CASSINI initiative, the EU’s dedicated support framework for space entrepreneurship.

Moreover, the EUSPA is mandated to foster technological development and the commercialisation of EU space industry and services, with a specific objective of helping entrepreneurs to grow and scale up. The Agency will continuously monitor the market, the evolution and impact of the space economy, and provide inputs on new user needs, creating an opportunity for innovative companies seeking to develop downstream applications, integrated services, and new data products based on EU space infrastructure.

11. The Military Dimension

The military dimension of space further amplifies these opportunities. As noted above, the Commission has explicitly described the EUSPA Regulation as part of Europe’s pursuit of “space readiness,” a concept prominently featured in the March 2025 White Paper for European Defence Readiness 2030. At the national level, Germany has made available a budget of EUR 35 billion for military space, signalling that defence-related space capabilities,  notably and most prominently including secure communications, intelligence, surveillance, and reconnaissance (ISR), and space situational awareness, will be a major growth driver for the sector, in particular through trickle down effects to suppliers and startups.

For startups, this convergence of civilian and military demand creates a substantially larger addressable market. Companies offering dual-use technologies, resilient satellite constellations, space-derived data analytics, or cybersecurity solutions for space infrastructure are particularly well-positioned to benefit from both the EUSPA’s expanded commercialisation mandate and the parallel surge in national defence space procurement.

Stakeholders should note that the EUSPA’s enhanced role in operational security, its cooperation with ENISA on cybersecurity, and the Agency’s positioning as a 24/7 operational entity (described above) all reflect the growing integration of space into Europe’s broader security and defence architecture.

III. Recommended Actions for Stakeholders

The EUSPA Regulation proposal, in combination with the EU Space Act, creates a new regulatory ecosystem that will require proactive engagement from a wide range of stakeholders. The following recommendations are structured by stakeholder category.

1. EU-based space operators and manufacturers should begin mapping their current and anticipated interactions with the EUSPA to identify which authorisation, registration, and compliance obligations will apply once the EU Space Act enters into force on 1 January 2030. They should assess

• the adequacy of their cybersecurity risk management systems,
• environmental footprint calculation methodologies, and
• business continuity plans

in light of the heightened requirements of both the Space Act and the EUSPA Regulation. Early engagement with national competent authorities and envisaged Qualified Technical Bodies (QTBs) is advisable to understand the forthcoming certification processes. 

2. Third-country operators providing space-based services or data within the EU, including US satellite operators, data providers, and hosted payload owners, should

• carefully assess their exposure to the EU market and determine whether they fall within the scope of the EU Space Act's authorisation requirements; and, where applicable,
• they should plan for the designation of an EU legal representative, prepare for potential equivalence decision applications, and monitor the legislative process for possible modifications to the extraterritorial scope provisions.

3. EUSPA prime contractors and service providers:

• should review their existing contractual arrangements in anticipation of enhanced business continuity and operational resilience obligations under Article 4(7) of the EUSPA Regulation;
• should prepare for compliance with the AI Regulation and the broader digital governance framework referenced in the Digital Annex if providing digital services to the agency;
• should anticipate deepened cooperation requirements between the EUSPA and ENISA, particularly if providing cybersecurity services.

4. Suppliers and service providers to EUSPA primes, in particular as it regards resilience or safety requirements should

• assess the new rulings to determine if and how these address also the supply chain, either by a requirement for the primes to contractually agree with suppliers in the same standards or indirectly, because the new Regulations may steer the market regarding certain standards and requirements;
• should engage with their prime contractors in order to, where possible, be included in cooperation and compliance planning at an early stage.

5. Member States and EU Regions should

• begin preparing for the pitch and the designation or establishment of national competent authorities as required by the EU Space Act and for contributing to the Security Accreditation Board's expanded activities.
• Member States and Regions that have not yet enacted national space legislation should consider whether to adopt interim rules or to await the final text of the EU Space Act before acting.

6. Investors and financial institutions active in the European space sector should

• factor the new regulatory costs and compliance timelines into their transaction due diligence and valuation models.
• The expanded EUSPA mandate and the near-doubling of its budget represent both regulatory risk and addressable market opportunity, depending on the positioning of portfolio companies within the emerging EU space regulatory framework.

7. Industry associations and trade bodies should

• actively participate in the legislative process during the European Parliament committee stage and Council working party negotiations, as the final text may differ significantly from the Commission's proposal.
• The public consultation period for the EU Space Act closed in November 2025, but ongoing advocacy and engagement with rapporteurs and shadow

rapporteurs remain essential channels for shaping the implementing measures and delegated acts that will determine the practical application of both the Space Act and the EUSPA Regulation. 

IV. Conclusion and Outlook

The Commission's proposal for a standalone EUSPA Regulation marks a structural shift in European space governance. Seen together with the EU Space Act, it creates an integrated regulatory framework that will reshape the terms of access to the European space market for EU and non-EU operators alike.

The legislative process is now underway (also for the draft EU Space Act), with the European Parliament and the Council expected to begin substantive deliberations in the second half of 2026. While the broad objectives of the proposal enjoy broad support, specific provisions, particularly regarding the scope of Commission control over EUSPA decisions, the accreditation of third-country operators, the fee-based revenue model, and the interaction with national space legislation, are likely to generate debate during the trilogue negotiations and, possibly, again regarding the question of competency.

For all stakeholders in the European space ecosystem, from launch providers and satellite manufacturers to data service companies and downstream application developers, the message is clear: the regulatory environment for space activities in Europe is fast developing and early preparation is essential.

HEUKING’s Space Law team continues to monitor the legislative process closely and is available to assist clients in navigating the evolving EU space regulatory framework.