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EU simplifies state aid for drug manufacturing to combat shortages

Negotiators in Brussels have agreed on new rules that will significantly simplify the provision of state aid to pharmaceutical manufacturers in European Union member states, the European Parliament has announced.

The initiative aims to swiftly address the problem of drug shortages, which in recent years have periodically affected several EU countries. The new rules will allow member states to channel funding to support pharmaceutical production more quickly and with less bureaucracy.

“The primary objective is to reduce Europe’s dependence on individual suppliers and production sites outside the continent,” the European Parliament’s statement emphasised.

European authorities believe that the excessive concentration of active pharmaceutical ingredients and finished medicine production in third countries poses risks to the Union’s pharmaceutical security. The new measures are intended to stimulate the development of local manufacturing and strengthen supply chain resilience.

The agreed rules will form part of the EU’s broader strategy to reinforce pharmaceutical autonomy. They are expected to allow member states to respond more flexibly to emerging shortages without breaching general competition rules.

Further details and the final text of the agreement are to be published shortly.