On October 21st, 2024, Hungary’s leading outer space specialists gathered to discuss the future of space competition, sustainability and role of Hungary. Another key area of discussion was the European space legislation under development and possibility of a Hungarian space act. Over the past decade, Hungary’s space sector has grown dramatically, leading to rising demands for national space legislation. Establishing a national space legislation would greatly support Hungary’s nascent space industry and help reinforce Hungarian sovereignty.
In many ways, Hungary is late to the space game. It only became a member of the European Space Agency(ESA) in 2015. Despite their late entry, according to the ESA, Hungary has been a reliable and aspirational member of the Agency. Since joining, Hungary has been involved in more than 60 projects and has received 114 contracts according to the PECS Agreement. This is a remarkable achievement given Hungary’s size, and reflects a growing importance placed on the space industry, as stressed by Hungary’s space commissioner, Orsolya Ferencz.
Of the ESA’s 22 members, 18 have national space legislation which governs non-governmental and commercial space activities. Despite the commonplace of such legislation, Hungary has yet to pass such legislation despite stated governmental intentions and the growing need for space regulation. Furthermore, under the European Union’s Treaty of the Functioning of the European Union, Article 189 encourages member states to pass national legislation and conduct various space activities from space observations, satellite launches, telecommunication services etc.
Such legislation is overdue, as the increased space presence of Hungarian non-governmental entities and universities requires structure, and Hungary has an international obligation to ensure the safety of its governmental and non-governmental space activities. Thus, what has been an ongoing debate since Hungary joined the ESA in 2015 will continue to receive significant attention until it is resolved.
As a signatory of the UN’s Outer Space Treaty(OST), Hungary is encouraged to pass a national space law act. Article VI plants responsibility and liability on the “appropriate State” for the activities of non-governmental actors. Article VII also establishes liability for the damages caused by space objects both on Earth and in outer space. The Liability Convention’s Article II and III further detail these liabilities which show that a state’s liability – due to the space activities’ ultrahazardous nature – can be unlimited. Article VIII of the OST introduces the State of Registry which establishes obligates countries to keep a registry of space activities. Since many of these activities place immense risk on the State, national outer space legislation can mitigate these risks by sharing them with non-commercial actors.
Besides legal obligations, it is in the state’s self-interest to introduce national space legislation. Due to the ultra-hazardous nature of space activities, states bear immense risk when non-governmental entities conduct space activities. Not only because of its obligation to exercise extensive supervision, but because it must compensate any damages if the private actor is unable to do so. Thus, states bear direct responsibility for any private actor under their jurisdiction which poses threats to both their international relations and financial obligations. National legislation can both mitigate and regulate any compensation which arise from damage which falls under international space law and general international law.
Passing national space legislation would also be in the spirit of Hungary’s legal tradition which underlines the importance of sovereignty. Hungary’s Constitution, the Fundamental Law of Hungary mentions the importance of independence 23 times. Article E of the Fundamental Law emphasizes the importance of European cooperation but recognizes state sovereignty takes precedence. Article Q also applies this principle to international cooperation and law.
While Articles I and II of the OST reject any attempt by a state to “subject to national appropriation by claim of sovereignty”, this is not a prohibition of national legislation. In fact, national space legislation encourages outer space to become accessible to all nations by providing each nation with its own framework to regulate its space activities within international law. It also diminishes ‘space dependence’ where one country depends on another for access to space activities.
Ensuring space sovereignty was a key aim of the European Space Law initiative, albeit with a more federalist and pan-European intention. However, as the EU is comprised of sovereign member states, the importance of space sovereignty must exist on a national level. Furthermore, as previously noted, international law requires the national regulation of non-governmental space activities. Therefore, the EU cannot, and should not, claim exclusive authority in this area, nor should the member states allow it. While rule harmonization is important in space cooperation, relinquishing space sovereignty hinders enforceability by enabling larger countries to oppress the interests of smaller space-faring nations.
In conclusion, a national legislative framework would enable Hungary to regulate space activities carried out by non-governmental and commercial entities, while also mitigating potential risks and damage to its international relations. Such a framework could foster innovation, enhance Hungary’s presence in space, and align it with other advanced space-faring nations, without significant financial exposure. By adopting the models of countries with similar size and goals, Hungary can effectively manage risk. While the need for national space legislation is both inevitable and unavoidable, the specific design of such regulation, and the choice of international models, will remain a subject of ongoing debate.
