On the new Italian Space Economy Law

On June 11, the Italian Senate approved the bill entitled "Provisions on Space Economy," introducing for the first time in Italy a comprehensive regulatory framework dedicated to space activities. The law, promoted by the government, establishes an authorisation system for companies intending to carry out space missions, either from Italian territory or from abroad, and defines the legal responsibilities in cases of damage caused by space objects. The bill was passed with 76 votes in favor and 57 against.

The legislation systematically regulates how space activities are conducted, the registration of space objects, the responsibilities of operators and the State, and introduces specific measures to support the development of the space economy. Through this law, Italy fills a significant regulatory gap by equipping itself with a vital tool to oversee a rapidly expanding and strategically important sector.

The law introduces a mandatory authorisation requirement for the exercise of space activities, assigning the powers of authorisation, supervision, and sanctions to a dedicated Supervisory Authority. It also establishes a National Register for the registration of space objects launched into outer space. The sector’s strategic planning will be guided by a National Space Economy Plan, to be updated every two years, which will define development priorities and operational guidelines. The law also provides for financial support measures aimed at businesses operating in the space sector.

The law is the result of extensive consultation with key public and private stakeholders and represents a fundamental legal instrument for regulating access to space by private operators, offering new development opportunities for the industry and the national economy.

The authorisation regime applies to Italian operators intending to conduct space activities from Italian or foreign territories, as well as to foreign operators wishing to operate from spaceports or from Italian territory. Space activities already authorised by other States are exempt from the Italian authorization requirement, provided that such authorisations are recognized by Italy based on treaties or international agreements, as established by Article 4, paragraph 4.

The Italian Space Agency (ASI) plays a central role as the technical authority responsible for the supervision and regulation of space activities. ASI handles the review of authorisation requests, monitors space operations, and, in cases of violations, adopts sanctions, including the possible revocation of authorizations. ASI will also continue to manage the National Register of Space Objects in accordance with the amended Law of July 12, 2005, No. 153, which implements the Convention on Registration of Objects Launched into Outer Space. The new law also confirms the organizational separation of ASI from the Ministry of Education and Research, as established by Article 29, paragraph 2.

The authorisation process involves a preliminary assessment by ASI, followed by submission to the Ministry of Enterprises and Made in Italy and the Interministerial Committee for Policies Related to Space and Aerospace Research (COMINT), which holds final decision-making authority. The law significantly strengthens the role of COMINT, transforming it from a consultative body into the central decision-making authority, responsible for interministerial coordination and the strategic direction of the sector.

A major innovation introduced by the law is the regulation of liability for damage caused by space objects, addressed in Title IV. The law repeals the previous regulation of January 25, 1983, No. 23, which had implemented the 1972 Convention on International Liability for Damage Caused by Space Objects, but which provided only a minimal and formal transposition, without establishing concrete mechanisms for the protection of victims. The previous legislation was extremely brief and lacked specific procedures to ensure compensation for damages caused by space objects launched by Italy. Furthermore, the 1972 Convention does not impose on States any obligation to establish domestic compensation mechanisms, instead foreseeing the possible creation of a Claims Commission (1) to settle disputes.

Victims of damage caused by space objects launched by Italy, whether domestic or foreign, may still seek compensation through Italian courts, which will apply the 1972 Convention and the relevant provisions of the Italian Civil Code. However, the new legislation explicitly places the liability for damages caused to third parties outside the space operation on the authorised operator, as provided by Article 18, paragraphs 1 and 2. Another significant innovation is the requirement for authorized operators to obtain insurance coverage or another suitable financial guarantee to cover potential damages, with a minimum coverage of 100 million euros per incident, as established by Article 21.

Of particular importance is Article 25 of the law, which provides for the establishment of a "national transmission capacity reserve," meaning a dedicated satellite network to ensure the continuity of institutional communications, especially in emergency situations. During the parliamentary debate, some opposition parties expressed concerns about the potential involvement of non-European operators, particularly the American company SpaceX, in managing sensitive government communications. In response, two amendments were approved in agreement with the opposition: the first requires that the awarding of the service comply with national security requirements, while the second introduces the obligation to guarantee an industrial return benefiting the Italian production system. Although the law allows the management of this network to be entrusted to private operators from EU or NATO member states, the wording of the provision does not explicitly exclude the participation of operators from non-EU third countries.

This legislation marks a crucial step towards the establishment of a comprehensive regulatory framework for space activities in Italy, creating strategic opportunities to foster sector growth and to strengthen the country’s international competitiveness. Nevertheless, the law presents some notable gaps. It mentions space mining but does not grant private entities the right to appropriate space resources, unlike the legislation adopted in the United States, Luxembourg, the United Arab Emirates, Japan, and India(3). Additionally, the law does not specifically address space tourism (4), nor does it provide a legal definition of a spaceport, leaving unresolved issues related to the potential development of new spaceports on Italian soil beyond the Luigi Broglio Space Center in Malindi.

These omissions, however, do not indicate a lack of legal reflection in Italy, nor do they suggest any limitation in the technical capabilities of its national industry. On the contrary, the new Space Economy Law marks the beginning of a structured administrative regulation of space activities, including through public and private contractual arrangements. The conditions required for the granting of administrative authorizations are, in many respects, comparable to the criteria applied in the exercise of special state intervention powers (the so-called "golden power"). With this legislation, the State aims to position itself as a leader in the new frontier of space, while simultaneously promoting innovation and supporting the development of the sector. The law thus serves as a solid foundation to facilitate the growth of Italy's space economy and as a starting point for the future development of specific regulations capable of addressing the challenges and seizing the opportunities presented by the evolving global space economy.

BIBLIOGRAPHY
(1) The 1972 Convention on International Liability for Damage Caused by Space Objects does not impose any obligation on States to establish a specific domestic compensation procedure. Instead, it provides for the possible establishment of a Claims Commission (Article 15 of the Convention), composed of three members: one appointed by the claimant State, one by the launching State, and a third, serving as president, chosen jointly by the two States.
https://www.fedlex.admin.ch/eli/cc/1974/784_784_784/it
(2) From suborbital flights to insurance policies: amidst the controversy over Musk, the Italian Chamber of Deputies approves the Space Law.
https://www.ilsole24ore.com/art/dai-voli-suborbitali-polizze-le-polemiche-musk-via-libera-camera-legge-spazio-AGdPb8KD
(3) I.E.S.K., On the Legal Framework of Orbiting Space Stations and the Privatisation of Space Law, pp. 122–123.
(4) Ibid., p. 138.