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The geopolitical scene of space activities fluctuates as more and more actors are engaged in the exploration and use of outer space in many revolutionary ways. These changes must be reflected in any future European space strategy in order to guarantee that Europe will maintain its position among the space leaders. This paper analyzes Europe’s current space policy and confronts it with the global challenges in the space sector today. The aim of the article is to recommend a well-adjusted space strategy to ensure the effective and sustainable exploration and use of outer space for the benefit of all European States. Firstly, the paper presents the coexistence of the EU and ESA as the two main conductors of Europe’s space programmes. Subsequently, the diverse motivators, needs and interests of their members in engaging in space-related activities are considered. Secondly, this paper argues that to be able to enhance European capabilities in space operations, the European space policy must focus on providing autonomy in access to and use of outer space. In particular, the paper highlights that to enable autonomy in various fields of space applications, first and foremost, independent access to space must be assured. The paper also extensively analyzes the challenges and opportunities related to the dynamic development of private space sector activities. It emphasizes the significance of the symbiotic cooperation between public institutions and private companies, taking into account its mutual benefits, as well as the need for an adequate regulatory framework backed by the right policy in order to incentivize private investments. Current difficult questions related to establishing an up-to-date space regime, and amending or just clarifying regulations concerning procedures and decision-making processes are addressed, with suggestions for future elaboration. The paper concludes that it is the right time for Europe to build a bold and forward-looking space policy.