US Raises Alarms Over EU Space Law That Threatens NATO Unity and Transatlantic Industry Ties

The United States has raised pointed concerns over a proposed European Union regulation that it contends could severely undermine transatlantic cooperation in space and disrupt longstanding defense and industrial partnerships between the EU and NATO allies. According to a November 2025 report by Breaking Defense titled “US slams ‘discriminatory’ draft EU space law as imperiling NATO cooperation,” U.S. officials have labeled the European Commission’s draft space law as exclusionary, warning it may compromise coordination within the NATO alliance and damage the global competitiveness of the space sector.

The draft regulation, part of broader efforts by the EU to bolster its strategic autonomy in space capabilities, includes provisions that would limit non-EU companies’ participation in key space programs. EU officials argue the proposed rules are designed to safeguard security interests and foster the growth of Europe’s domestic space industry. However, U.S. officials have expressed alarm over what they see as a retreat from the open and collaborative norms that have governed transatlantic defense and technological cooperation for decades.

Speaking on background, sources within the U.S. government indicated frustration with what they perceive as a growing trend toward economic protectionism in European defense and aerospace policy. One official told Breaking Defense that the draft regulation, if implemented in its current form, could jeopardize joint space operations, intelligence sharing, and industrial partnerships central to NATO’s technological edge. Critics of the EU’s proposal fear it may set a precedent that encourages fragmentation in allied defense planning at a time of heightened geostrategic tensions.

The European Commission has defended the proposal, arguing that establishing strict eligibility criteria is essential to prevent the leakage of sensitive technologies and to ensure a more resilient and autonomous European space policy. EU officials have also pushed back against charges of discrimination, noting that similar restrictions are found in U.S. policy frameworks such as the International Traffic in Arms Regulations (ITAR).

Still, the timing of the draft law—amid increased threats from adversarial space powers and greater reliance on integrated satellite networks for military and civilian purposes—has intensified concerns. Analysts warn that rifts over regulatory policy could erode years of trust built through joint ventures such as the Galileo satellite program and various NATO space initiatives.

Both EU and U.S. officials have suggested that talks are ongoing to address areas of disagreement before the proposed legislation advances further. Observers note that Washington and Brussels have managed to navigate comparable disputes in the past, often striking compromises that balance principles of sovereignty and cooperation.

Nonetheless, the dispute underscores broader tensions surrounding the concept of “strategic autonomy” promoted by the EU in recent years. While European leaders have framed these efforts as necessary steps toward regional self-reliance, allies across the Atlantic worry the trend could dilute NATO cohesion and marginalize trusted non-EU partners in critical defense domains.

The outcome of this dispute may hinge on whether the EU is willing to modify the regulation to accommodate close partners such as the U.S., or whether it will press ahead with a more insular approach. As one senior official noted in the Breaking Defense piece, such decisions could shape the future of transatlantic space cooperation for years to come.