A highly efficient EUV spectrograph is designed for high-resolution spectroscopic observation. The spectrograph is designed for point source astronomy in a 40-120 nm bandpass and is to be ORFEUS (Orbiting Retrievable Far and Extreme Ultraviolet Spectrometer), scheduled for launch as the first payload of a German space platform Astro-SPAS (Astronomy Shuttle Pallet Satellite). The design uses spherical varied line-space (SVLS) grating to minimize astigmatism, coma, and spherical aberration. The effectiveness and practical feasibility of the design is proved by an SVLS grating for visible use. The image focusing properties of the SVLS grating for ORFEUS are compared to those with toroidal uniform line-space (TULS) design. The SVLS design is superior to the TULS, theoretically in resolution and image concentration, but also practically with not only fabrication ease. Four SVLS gratings with nominal groove densities of 6000, 4550, 3450, and 2616 gr./mm, and a 200 mm x 200 mm ruled area have been ruled using a numerically controlled ruling engine for use in ORFEUS.