Drugs Shortages: The EC Can't Fix The Crisis It Created
The European Commission’s determination to address a now-chronic medicine fall short with its lack of competence. The European Commission created the problem in the first place.
Despite years of effort, the European Union continues to face a growing crisis: a chronic shortage of essential medicines across the continent. The COVID-19 pandemic may have sparked institutional action, but the outcomes have been limited—undermined by structural constraints and political inertia.
At the heart of the issue lies a stubborn fact: healthcare remains the exclusive domain of national governments. Each Member State decides which drugs to authorize, how to price and reimburse them, and how to manage supply chains. The European Commission, constrained by EU treaties, can only coordinate. Transferring greater powers to Brussels would require treaty reform—politically untenable, particularly given opposition from Hungary and Poland.
During the pandemic, the EU attempted to assert leadership through joint vaccine procurement. Instead, the process became a case study in opacity and over-ordering. Over a billion doses were discarded, costing taxpayers an estimated €4 billion, according to the European Court of Auditors—a bitter irony as the bloc now faces widespread medicine shortages.
In response, Brussels launched a series of initiatives: the Health Emergency Preparedness and Response Authority (HERA), a pharmaceutical strategy, a Critical Medicines Alliance, and a monitoring platform at the European Medicines Agency. Yet none have reversed the trend. Shortages hit record highs in 2023 and 2024, and the situation shows no signs of improvement in 2025.
A recent report by the European Court of Auditors underscores the seriousness of the situation:
“The fragmentation of the EU’s single pharmaceutical market continues to hinder availability.”
“The Commission’s response has been problematic.”
“There is still no effective framework for managing critical shortages.”
The Commission's hands remain tied. It cannot compel pharmaceutical companies to act, and Member States remain wary of surrendering sovereignty—particularly after €1 billion was cut from the EU4Health budget (20% of its total), in part to support aid to Ukraine.