Drug shortages are making Europe dependent on China and India – the consequences of decades of cost-cutting policies

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

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

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