More sceptical member states hope ‘stick will never be used’ amid concerns over supply chain

CoronavirusMore sceptical member states hope stick will never be used amid concerns over supply chain
Thu 25 Mar 2021 09.19 GMT
EU leaders are likely to shy away from supporting the use of new powers to block Covid vaccine shipments to countries such as the UK with better jab coverage than the bloc, according to a draft statement ahead of a meeting of EU leaders today.
The European commission has increased its scope for blocking vaccine exports but disquiet among capitals is set to be reflected in a muted statement at the end of the virtual summit on Thursday evening.
The latest draft summit conclusion has leaders underlining the importance of transparency as well as of the use of export authorisations.
Countries such as the Netherlands, Ireland, Belgium and Sweden, who are concerned about the impact on supply chains, have pushed back against any explicit reference to the commissions revised regulation.
The commission will keep its new powers despite the lack of explicit backing of the leaders at the end of their summit, but diplomatic sources from within the most sceptical member states said they hoped the stick will never be used.
Speaking in the Bundestag, the German chancellor, Angela Merkel, notably did not reference the new powers but instead called on Europe to increase domestic vaccine production given the lack of exports from the UK and the US, describing the pandemic as a great litmus test of the EUs capabilities.
The problem at the moment with the vaccine supply isnt so much due to the question how much was ordered, but more about how much can be manufactured on European soil, she said.
Because we can clearly see: British manufacturing plants manufacture for Great Britain, the US arent exporting anything, and therefore we rely on what can be produced in Europe and we have to expect this virus will preoccupy us for a long time.
On Wednesday the commission updated its export authorisation mechanism to allow officials to block shipments to countries with a high level of vaccination coverage or those that restrict exports through law or in their contracts with suppliers.
The UK does not ban the export of vaccines, but the government signed a contract with AstraZeneca that obliges the Anglo-Swedish company to deliver doses produced in Oxford and Staffordshire to Britain first.
The UK also appears to fall foul of the EUs new criteria on vaccination coverage, with 45 jabs administered per 100 residents compared with 13 per 100 on average across the 27 member states.
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The regulation, in force since January, previously only took into account whether a supplier was fulfilling their contract with the EU.
In an interview with the Financial Times, the EUs internal market commissioner, Thierry Breton, rejected claims that the bloc was being protectionist. We have a feeling that the vaccine nationalism is really on the other side of the Channel, he said. We are not seeing any vaccines in the UK arriving here.
The EU has suffered from a major supply shortfall of the Oxford/AstraZeneca vaccine because of a yield problem at a plant in Belgium and the companys subsequent refusal to divert doses made in the UK.
The EU is threatening to block the export to the UK of an unspecified number of doses being made at an AstraZeneca plant in the Netherlands.
UK officials have been in negotiations since Monday on the issue. In a joint statement on Wednesday evening, the two sides said they were continuing to seek a win-win solution.
But the UK health secretary, Matt Hancock, has warned the EU that the UK had contract law on its side. I believe that free trading nations follow the law of contracts, he told the Financial Times. They have a best efforts contract and we have an exclusivity deal.
The 27 EU heads of state and government are meeting from noon GMT. The US president, Joe Biden, is due to attend the virtual summit on Thursday evening to discuss future cooperation. The last US president to attend a meeting of EU leaders was Barack Obama in 2009 when he attended a summit in Prague.
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