Drug shortages make Europe dependent on China and India – The consequences of decades of cost-cutting policies

Production relocation and cheap production abroad lead to critical drug shortages in Europe – The current challenge of drug supply

The availability of medicines represents one of the key challenges facing the European healthcare system. Currently, over 500 medicines are reported as difficult to obtain in Germany, although the situation has improved only marginally compared to the previous year. Vital medicines such as antibiotics for children, psychotropic drugs, and diabetes medications are particularly affected. These shortages arise from complex interrelationships in the global supply chain, ranging from production disruptions to geopolitical tensions. The European Commission has found a legislative response to this challenge with the Critical Medicines Act. This draft legislation aims to strengthen European production and reduce dependence on non-European suppliers. Currently, approximately 80 percent of the antibiotics used in Europe come from non-European manufacturers, primarily from China and India. The Critical Medicines Act was published by the European Commission as a proposed regulation on March 11, 2025. This marked the beginning of the formal legislative process within the first 100 days of the Commission's new term of office. The aim of the law is to strengthen the security of supply of essential medicines in the EU and strategically expand European production capacity.

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