Vulcan View: The latest EU developments 10 March – 14 March

European Commission presents Critical Medicines Act to tackle drug shortages

On Tuesday, 11 March, European Commissioner for Health and Animal Welfare Olivér Várhelyi introduced the Critical Medicines Act (CMA), sharing that the proposal is needed to ensure the security of supply and availability of essential medicines in Europe. Várhelyi highlighted that the Act builds on the work of the Critical Medicines Alliance and will have a positive impact on EU competitiveness by creating a more stable and predictable market.

The Act was initially mentioned in European Commission President Ursula von der Leyen’s political guidelines and promised to be announced within the first 100 days of the Commission’s mandate. Member States are experiencing severe medicine shortages, with geopolitical tensions exposing significant vulnerabilities in the EU’s pharmaceutical supply chain.

The Act will facilitate investments for companies that increase EU manufacturing of critical medicines while incentivising actions that make supply chains more resilient. Key elements of the Act include:

-Strategic projects: to create, increase or modernise EU manufacturing capacity for critical medicines or their ingredients.

-State aid guidance: to assist Member States in financially supporting such strategic projects.

-Public procurement: will be used to diversify and incentivise the resilience of supply chains. Procurers will be required where justified to favour manufacturers who create critical medicines within Europe.

-Collaborative procurement: among different Member States will be supported by the Commission to address availability and access disparities of critical medicines and other medicines throughout the EU.

-International partnerships: with like-minded countries and regions will be explored, to broaden the supply chain and reduce dependencies on a single supplier.

At the plenary debate in Strasbourg on 11 March, there was a broad consensus on the need to reduce dependence on third countries and strengthen EU-based production. Across the political groups, there is an agreement that current reliance on external suppliers, particularly China and India, poses a strategic risk. Similarly, many MEPs emphasised that for European manufacturing to be viable, it must be profitable and competitive, requiring targeted investment and incentives.

Furthermore, the common theme of EU autonomy is evident in discussions on supply chain security and stockpiling. The debate also highlights financial constraints, as multiple MEPs pointed to the disparities between health and defence budgets. There is also political alignment on the urgent need for pharmaceutical resilience and affordability.

With the publication of the Critical Medicines Act (CMA), the European Parliament and Council will start work on the file through the ordinary legislative procedure.

European Parliament and Member States scrutinise the new EU Automotive Plan

The EU’s new Industrial Action Plan for the European automotive sector was a central topic during discussions at the European Parliament plenary in Strasbourg and at the Competitiveness Council, where Member States gathered to deliberate on its future. The plan aims to maintain the sector’s global competitiveness through innovation, digitalisation, clean mobility, and enhanced supply chain resilience while addressing the environmental and regulatory challenges that the industry currently faces.

Debate in the Strasbourg plenary

At the European Parliament plenary on Wednesday (12 March), Polish Minister for European Affairs Adam Szłapka, on behalf of the Council, underlined the automotive sector’s importance to the EU economy, noting the need for flexibility—especially concerning CO₂ emission performance standards—to provide certainty amidst rapid technological change and intense global competition. Meanwhile, the Commission, represented by Transport Commissioner Apostolos Tzitzikostas, presented the Industrial Action Plan to keep the industry innovative and competitive. He highlighted measures to harmonise EU legislation and boost skills development, ensuring the automotive sector remains at the forefront of technological advancement.

During the plenary, political groups offered a range of opinions in a generally concise manner. A broad consensus emerged among several groups—such as the European People’s Party, Renew Europe, and the European Conservatives and Reformists—supporting a balanced, technology-neutral approach prioritising innovation and market-driven solutions.

In contrast, other groups, including the Socialists and Democrats alongside the Greens and parts of the ECR group, expressed concerns over delays in transitioning to zero-emission vehicles and called for more ambitious environmental measures. Overall, while opinions varied on the specifics, there was a shared call for policies that adequately support industry competitiveness without compromising green objectives.

Member States’ feedback at the Competitiveness Council

At the Competitiveness Council on Wednesday (12 March), the overall tone was of cautious optimism coupled with pragmatic demands. European Commission Executive Vice-President Stéphane Sejourne introduced the Automotive Plan by emphasising a new European consensus on industrial policy. He noted that the plan had been well received by stakeholders, including car manufacturers and the battery industry. They also stressed the importance of collaboration across the entire value chain to meet production targets.

Although remarks varied, there was a general agreement among Member States on the need for regulatory flexibility and long-term stability. Some countries raised concerns about the potential disadvantages for early adopters if CO₂ standards were amended too abruptly, while others called for maintaining a technology-neutral stance and supporting productive investments. Finally, Member States had a shared understanding that the automotive sector is critical not only to national economies but also to the EU’s broader industrial and environmental ambitions.

Conclusion

The debates in Strasbourg and Brussels reveal a fragmented consensus. While the plan is designed to spur innovation and secure the sector’s competitiveness in a rapidly evolving global market, it must also accommodate diverse views on environmental responsibility and market regulation. With China and the U.S. advancing rapidly, the bloc’s success will depend on bridging its internal divides—and turning its Industrial Plan into actionable, balanced policy.

Ireland unveils preliminary position on FP10: Prioritising excellence, innovation and streamlined implementation

The Department of Further and Higher Education, Research, Innovation and Sciencereleased Ireland’s preliminary position paper for the 10^th EU Research and Innovation Framework Programme (FP10) until 2034. Therefore, it is essential that the programme is forward-thinking and adaptable. This will ensure the continued growth of the EU’s R&I capabilities, particularly in sectors crucial to European competitiveness, such as semiconductors, quantum computing and MedTech.

The paper outlines Ireland’s priorities for the FP10, emphasising three key principles:

1. Excellence: Excellence must remain the primary criterion for the award of framework programme funding to uphold Europe’s strong track record in producing world-class research. The paper acknowledged the need to incorporate transnational cooperation into the FP10. However, it emphasised the importance of balancing international collaboration with safeguarding EU and Irish interests. This is particularly relevant in the current landscape, as R&I cannot be separated from geopolitical dynamics, with protectionist trends emerging, especially under the Trump administration.

Furthermore, the paper calls on the FP10 to strike a balance between “curiosity-driven” and targeted research while aligning with European Research Area (ERA) priorities. The FP10 will act as the primary mechanism for implementing agreed ERA priorities for 2025 to 2027. In February 2025, the European Commission adopted its proposal for a Council Recommendation on the European Research Area Policy Agenda 2025-2027. The adoption of the ERA Policy Agenda 2025-27 by the Council is expected in May under the Polish presidency.

2. Innovation: FP10 will play a crucial role in the new European competitiveness agenda. The paper called for duplication to be minimised and coherence to be encouraged across FP10 and other Multiannual Financial Framework programmes to optimise public investment and attract private funding. Additionally, Ireland recognises the need for a dedicated focus on disruptive innovation while supporting all forms of innovation.

The paper questioned the continuation of the European Institute of Innovation and Technology in its current form. The paper called on the EU to carry out a cost-benefit analysis of the various innovation instruments to ensure that the new FP10 is well-equipped to deliver Europe’s R&I objectives.

3. Implementation tools:  To maximise FP10’s impact, it is essential to ensure that the implementation tools are fit for purpose. The paper called for simplification to ensure that the FP10 is accessible to reduce the administrative burden on funding applicants. The EU should focus on streamlining the number of instruments and avoid the introduction of new tools without strong justification.

Moreover, Ireland supports the continuation of the three-pillar approach and suggests improvements in several areas, including infrastructure, partnerships, missions and interlinkages between pillars. An integrated approach to the design and implementation of the FP10 is crucial to optimise the effect of R&I investment and achieve maximum impact. FP10 presents an opportunity for the EU to reexamine the existing horizontal requirements.

Ireland’s preliminary position paper on the FP10 aligns with the commitments to R&I outlined in the Programme for Government, reaffirming the government’s commitment to fostering a vibrant R&I ecosystem in Ireland and the wider European Union.

Compliments of Vulcan Consulting – a member of the EACCNY