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Vivian Xie
12 May 2026

EU drafts deal to end essential medicines shortage

European negotiators have agreed new legislation to tackle persistent shortages of essential medicines by prioritising supply security over price in public procurement and supporting domestic pharmaceutical manufacturing with strategic funding.

European Union negotiators have reached a provisional agreement on new measures designed to tackle persistent shortages of essential medicines across the bloc, marking a significant step towards strengthening pharmaceutical security and reducing dependency on non-EU suppliers. The deal, struck in the early hours of Tuesday morning between European Parliament and Council representatives, introduces a framework that prioritises patient access whilst simultaneously boosting the competitiveness of Europe's pharmaceutical manufacturing sector.

The agreement comes after years of recurring supply disruptions that have left patients across Europe struggling to obtain vital medications, including antibiotics, painkillers, insulin, vaccines and fever syrups for children. These shortages have exposed the vulnerability of European healthcare systems to global supply chain disruptions and highlighted the continent's heavy reliance on pharmaceutical production outside its borders.

At the heart of the new legislation is a fundamental shift in how public procurement of medicines will be conducted. Under the agreed rules, price will no longer be permitted as the sole criterion when awarding contracts for critical medicines. Instead, procurement procedures must take into account security of supply, the resilience of production chains and manufacturing capacity within the EU. This "Buy European" approach is designed to favour companies that produce medicines within Europe, ensuring that public procurement supports reliable suppliers and contributes to long-term supply security.

The measures also establish a framework for supporting strategic pharmaceutical manufacturing projects with public funds, making it easier for member states to invest in domestic production capacity. Companies undertaking strategic projects will benefit from access to both national and EU funding streams, as well as faster and more efficient permitting procedures. This represents a concrete commitment to strengthening Europe's pharmaceutical manufacturing base and relocating the production of essential medicines within the continent.

Collaborative procurement at EU level forms another cornerstone of the agreement, enabling member states to pool their purchasing power and coordinate their approach to securing supplies of critical medicines. This mechanism is intended to provide smaller countries with greater negotiating leverage whilst ensuring more equitable access to essential medications across the bloc.

The deal also addresses the coordination of national stockpiles and contingency reserves, creating an EU-wide mechanism to better anticipate and manage shortages before they reach crisis point. Whilst the final agreement respects member states' sovereignty over their own stockpiles, it establishes frameworks for voluntary cooperation and information sharing that should enable faster responses to emerging supply disruptions.

Rapporteur Tomislav Sokol emphasised that the agreement places patients' interests firmly at the centre whilst strengthening Europe's resilience. He noted that the legislation sends a clear signal that Europe is committed to rebuilding its pharmaceutical manufacturing capacity after decades of offshoring production to lower-cost regions.

Public Health Committee Chair Adam Jarubas described the Critical Medicines Act as closely linked to the broader pharmaceutical package and a missing piece of the EU's response to medicines shortages. He characterised it as implementing the Pharmaceutical Strategy for Europe and marking a milestone for the European Health Union, delivering greater medicines security for Europeans whilst supporting the bloc's reindustrialisation and competitiveness agenda.

Cypriot Health Minister Neophytos Charalambides, whose country currently holds the rotating EU Council presidency, stressed that patients should not have to worry about whether important medicines such as antibiotics are available in their local pharmacy or hospital.

Before the new rules can enter into force, the provisional agreement must be formally approved by both the European Parliament and the Council of the EU. This confirmation process is typically considered a formality once negotiators from both institutions have reached a compromise text. The legislation represents a comprehensive response to a problem that has affected millions of Europeans and demonstrates the bloc's determination to build a more resilient and self-sufficient pharmaceutical sector capable of meeting the healthcare needs of its citizens.

Source: Deal on tackling EU shortages of essential medicines [Accessed May 12, 2026] https://www.europarl.europa.eu/news/en/press-room/20260511IPR43110/deal-on-tackling-eu-shortages-of-essential-medicines

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Vivian Xie
Editor - Custom Content

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