The geopolitical scene of space activities fluctuates as more and more actors are engaged in exploration and use of outer space in many revolutionary ways. These changes have to be reflected in future European space strategy in order to guarantee that Europe will maintain its position among space leaders. This paper analyzes the current Europe's space policy and confronts it with nowadays global challenges in the space sector. The ultimate aim of the article is to recommend a well-adjusted space strategy to assure effective and sustainable exploration and use of outer space for the benefit of all European States. Firstly, there is presented the coexistence of EU and ESA as two main conductors of Europe's space programmes and subsequently diverse motivators, needs and interests of their members in engagement 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 has to focus on providing its autonomy in access and use of outer space. In particular, the paper highlights that to enable autonomy in various fields of space applications, first and foremost, an independent access to space has to be assured. The present paper also aims to extensively analyze the challenges and opportunities related to dynamic development of private space sector activities. It emphasizes the significance of symbiotic cooperation between public institutions and private companies with regard to mutual as well as the need for adequate regulatory framework backed by right policy in order to incentivize private investments. Current difficult questions related to establishment of up-to-date space regime, amendment or just clarification of regulations concerning procedures and decision-making process are addressed with suggestions for future elaboration. The paper concludes that it is a right time for Europe to build a bold and prospective space policy.