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This book analyzes the policies and space economy programs of major space-faring nations and explores whether the present institutional set-up in Europe is adequate to address the challenges. At the core of the discussion are the relative roles of governments and markets in a highly dynamic panorama that involves advancements in science, modifications in technology and organization, and the introduction of new rules of behavior. After a close examination of the history of development of the space economy, and the shift from the centralized model to deregulation and the opening up of space activities to commercial companies, a wide-ranging overview of global space governance is provided. National and regional perspectives are discussed, and the current role of commercial actors in the global space system is elucidated. The various challenges faced by Europe are then examined, including the threat posed by institutional and market fragmentation to the emergence of European companies able to compete with companies of nations such as the USA. The final part of the book analyzes proposals for reforming of the space system in Europe and offers a vision for future European space policy.