Commercial interest in space has boomed in recent years but Europe is struggling to keep up with US and Chinese rivals.

This is partially due to the patchwork of national laws affecting businesses operating in the 27-nation union, according to the European Commission.

Currently 12 member states have their own space laws, with one more in the making, said the EU commissioner for space, Andrius Kubilius.

"This fragmentation is bad for business, bad for competitiveness, bad for our future in space," Kubilius said presenting the bloc's plans at a press conference in Brussels.

"Today we propose one single set of rules," he added, noting that the envisaged EU Space Act marked the first EU attempt to regulate space activities.

Brussels wants to introduce common measures to track space objects and limit new debris, including requirements for the safe disposal of satellites at the end of their operational life.

This aims to reduce space junk, a growing problem with 50,000 new satellites expected to launch over the next decade, adding to the 11,000 already in orbit.

They orbit Earth along with more than 128 million pieces of debris, including rocket parts and disbanded satellites, circulating in space, increasing the risk of collisions.

"In a worst-case scenario, this could trigger cascading crashes that render key orbits unusable and cut off access to vital satellite services," the commission said.

The regulation would also require space operators to conduct risk assessments throughout a satellite's life-cycle and apply cyber-security rules.

Finally, it would set common rules to measure the environmental impact of planet warming emissions and debris generated by the sector.

The rules would apply to European "national space assets", as well as to non-EU operators offering services in the bloc.

The proposal is subject to negotiations with the European Parliament and member states.

About 57 percent of global private investment in the space sector currently goes to the US, followed by China with 15. The European Union and Britain together attract a mere 11 percent of funds, according to EU officials.