Critical medicines: EU measures to boost competitiveness and tackle shortages 

This article is brought to you in association with the European Parliament.

On Tuesday, Parliament adopted proposals to enhance the availability and supply of essential medicines in the EU.

The report, adopted with 503 votes in favour, 57 against and 108 abstentions, aims to ensure a high level of public health protection for EU citizens by reducing the dependency of the EU on other countries and boosting the competitiveness of its pharmaceutical sector.

Strategic projects and priority funding

MEPs support the creation of industrial “strategic projects’” located in the EU to create, modernise and improve manufacturing capacity. They want national governments and the EU to prioritise financial support for strategic projects in the current budget and the EU’s next multiannual financial framework. Companies benefiting from public financial support must meet clear obligations, including prioritising supply to the EU market.

Procurement policy that supports EU production

Under their proposals, contracting authorities in the EU would need to apply procurement requirements that favour producers manufacturing a significant proportion of these critical medicines in the EU.

The report also highlights the benefits of voluntary cross-border procurement, to improve supply, notably for rare disease medicines, antimicrobials, and other innovative, high-cost, or specialised treatments. MEPs want to lower the number of countries that may engage in joint procurement procedures to at least five (compared to nine in the Commission’s initial proposal).

Improved coordination of national stockpiles

To better anticipate and manage shortages, MEPs call for the creation of an EU coordination mechanism for national stockpiles and contingency stocks of critical medicines. They also want the Commission to have the power to decide on, as a last resort, the redistribution of medicines from one national stockpile to one or more other countries, in instances where a shortage or a supply disruption has been identified.

Quote

Rapporteur Tomislav Sokol (EPP, HR) said: “We agreed today on clear priorities: the coordination of national stockpiles and contingency stocks, boosting the competitiveness of the EU’s pharmaceutical industry, and addressing shortages of medicines by ensuring their accessibility and availability for EU patients. We also established a clear and strong principle for public procurement: price can no longer be the sole criterion when awarding contracts for medicines. Security of supply, the resilience of production chains, and manufacturing capacity within the EU must be taken into account. This ‘Buy European’ approach ensures public procurement supports reliable suppliers, strengthens EU-based production of medicines, and contributes to long-term supply security.”

Next steps

Parliament is now ready to start negotiations with EU governments on the final shape of the law.

Background

In March 2025, the Commission made a proposal for a regulation on critical medicines (such as antibiotics, insulin, vaccines, and medicines for chronic diseases) to shore up their availability in the EU. The proposal also aims to improve access to certain medicines of common interest that encounter market failures. Over 50% of reported medicine shortages are caused by manufacturing issues, including shortages in active substances.