On 6 March 2025, Italy’s Chamber of Deputies approved a draft law on Space Economics, submitted by the Prime Minister and the Ministro delle Imprese e del Made in Italy, which has now been sent to the Senate for final approval.
The approval of the Space Economics draft law is a significant legislative step towards regulating and promoting Italian activities in outer space. It will establish a comprehensive framework for Space exploration, commercial ventures and international collaborations, aligning Italy with global standards in Space governance.
The main pillars of the Space Economics draft law are:
- Space Activity Definition: Space Activity is defined as “the launch, release, in-orbit management and re-entry of space objects, including the disposal from Earth orbits and removal of objects, in-orbit services, assemblage and use of orbiting space stations as well as the production of objects in outer space and on celestial bodies; the exploration, extraction and use of natural resources in outer space and on celestial bodies, in accordance with internationally adopted legal instruments the launching, flight, and short-term or long-term stay of living beings in outer space and on celestial bodies; activities conducted through stratospheric platforms and sounding rockets”.
The definition also includes a catch-all sentence covering any other activity carried out in outer Space and on celestial bodies.
- Regulatory Framework and Authorizations: Clear guidelines for licensing, safety protocols and environmental impact for governmental and private entities involved in Space missions. Issuance of an authorization will be required for each single Space Activity and will include objective (e.g. the environmental sustainability of the project) and subjective requirements (e.g. professional and technical capabilities and adequate financial standing).
- Liability Regime: A comprehensive liability regime is introduced to address potential damages arising from Space Activities. In accordance with the Outer Space Treaty (1967) and the Liability Convention (1972), Italy assumes international responsibility for national Space Activities, whether conducted by governmental or private entities. Moreover, any operator engaging in Space Activities has to provide adequate financial guarantees or insurance coverage to compensate for damages caused to third parties on Earth or in outer Space.
- International Cooperation: Emphasizing Italy’s commitment to global Space initiatives, aiming to facilitate partnerships with international Space agencies and organizations; authorization for Space Activities can be replaced by recognizing an authorization issued by a foreign state according to equivalent criteria.
- National Plan for Space Economics: A national plan to be adopted to promote Space Economics at national level with a time horizon of at least five years. The main activities to be carried out will be managing relationships with institutional stakeholders in relation to concluding innovative partnership agreements, analyses related to the combined use of the various instruments available for providing resources and programming, control and monitoring activities of the initiatives financed with the Space Economics Fund’s resources.
- Space Economics Fund: A fund will be created to foster the development of the market for products and services based on space technologies. The allocation for 2025 is EUR 35 million. The Fund is also replenished through proceeds from contributions related to permits and penalties recovered.
- Transmission Capability Reserve: The Ministero delle Imprese e del Made in Italy will provide for the establishment of a national transmission capability reserve through satellite communications managed exclusively by entities belonging to the EU or the Atlantic Alliance. The reserve is aimed at guaranteeing, in critical situations or when terrestrial networks are unavailable, an alternative routing with adequate transmission speed for communications between strategic network nodes for applications of a governmental nature or of national interest, including the functionalities and communications of the national cloud.
- Incentives to small/medium companies and startups: Special rules and incentives are established to facilitate the access of small and medium-sized companies and innovative startups to public contract awards in the field of Space Activities and aerospace technologies.
The approval of the Space Economics draft law without any significant amendments from the Senate is a unique opportunity to invest in global space initiatives and projects related to developing space technologies and infrastructure.
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