Italy Space Framework Law
In June 2025, Italy approved the country’s first space economy framework law that fills a regulatory gap in private sector space activities and aligns with international standards. The law mandates both national and foreign operators to obtain authorization to operate from the Ministry of Enterprises and Made in Italy (MiMiT, delegated authority for space) through the Italian Space Agency (ASI), the regulatory and enforcement authority with oversight of the registration of space objects launched from Italy.
Italy’s new law outlines a series of requirements including emissions impact assessments (light, radio-electrical), space debris mitigation plans, registration of space objects in the national registry, and mandatory insurance coverage with a ceiling of €100 million per space incident. In addition, the legislation will outline efficient use of the satellite communication spectrum. The decree introduces a 5-year strategic space economy roadmap and provides for a multi-year fund ($175 million) designed to drive infrastructure projects, innovation and international collaboration. In addition, a total of $8.5 billion of National Recovery and Resilience Plan (NRRP) resources are earmarked for the space sector through 2026, in addition to funds already committed to ASI ($2.7 billion). The framework includes provisions to assist small and medium-sized enterprises (SMEs) and startups to access public contracts.
Italy’s space economy at large is valued at about $3 billion. Italy ranks 7th globally and 1st in Europe for its investment in space activities as a percentage of GDP. It is expected that the new regulatory framework will further strengthen Italy’s leading position in the global space industry.
Italy has a very wide, well-articulated and complex industrial value chain. The industry is characterized by a few large system integrators able to assemble complex systems and a wide community of interconnected SMEs accounting for 80 percent of the national market. Italian industry is contributing to advancement in human spaceflight and exploration, supporting international missions by contributing orbiting, equipment and surface elements. The country’s know-how includes launcher production, satellite production, ground stations, geospatial data collection, flight control and data transmission, and upstream and downstream services.
Italy has been a valued space economy partner of the United States for over 50 years. Last October, the U.S.-Italy Space Dialogue was signed which aims to further strengthen cooperation and advance bilateral collaboration in space matters. The initiative will focus on a variety of areas, including climate, sustainable and safe use of outer space, the advancement of national security space cooperation, and information sharing.
U.S. companies with sophisticated materials and technology may find sourcing opportunities in Italy. The Italian government does not typically purchase goods and services abroad unless they cannot be procured locally through domestic sources, which would include subsidiaries, branches and agents/distributors of U.S. companies. To be considered as a source for Italian government purchases, it is highly recommended that U.S. firms be established locally or have representation in Italy/Europe. U.S. entrepreneurs interested in connecting with Italian industry players, seeking representation and additional information on the market and CS services may contact Maria Calabria, Aerospace and Defense Trade Specialist, Maria.Calabria@trade.gov.