Sign in Subscribe
European Union

EU Demands AstraZeneca Use UK-made Vaccines to Fill Shortfall

Strategic Insights

— 1 min read

The European Commission has called on AstraZeneca to use Covid-19 vaccines produced in the UK to fulfill delivery obligations to the EU, amid a bitter dispute over supply shortfalls. The demand risks exacerbating post-Brexit tensions, with the UK and EU having separate vaccine supply contracts. AstraZeneca is contractually obliged to use vaccines produced at UK plants to fulfill its delivery obligations to the EU, according to the European Commission. The Commission has also asked the company to agree to publish its EU supply contract.

Key Takeaways:

  • The EU has demanded that AstraZeneca use Covid-19 vaccines produced in the UK to fill a shortfall in supplies to its member states.
  • The EU has asked AstraZeneca to agree to publish its EU supply contract, which is reportedly a 30-page document.
  • AstraZeneca is contractually obliged to use vaccines produced at UK plants to fulfill its delivery obligations to the EU, according to the European Commission.
  • The UK has a separate vaccine supply contract with AstraZeneca, signed three months before the EU's contract.
  • Boris Johnson, the UK Prime Minister, has stated that the UK has a "watertight deal" with AstraZeneca to supply 100m doses.
  • Stella Kyriakides, EU Health Commissioner, has stated that AstraZeneca must fulfill its "contractual, societal, and moral obligations" to supply the EU with vaccines.
  • Pascal Soriot, AstraZeneca's CEO, has defended the company's conduct, stating that the supply schedule for the EU was not a "commitment" but a "best effort".

Statistics:

  • AstraZeneca has pledged to deliver only about a quarter of the 100m-plus doses the EU had expected in the first quarter of 2021.
  • The EU has halted vaccine supplies in Madrid for at least 10 days due to dwindling vaccine supplies.
  • The UK has vaccinated more than 7m people as of yesterday's press conference.
  • AstraZeneca has two Covid-19 vaccine plants in the UK and two inside the EU.

Sources:

  • "EU calls on AstraZeneca to use UK-made vaccines to fill shortfall," Financial Times, March 17, 2021
  • "AstraZeneca defends its vaccine deliveries in Europe," The Guardian, March 15, 2021
  • "European Union asks AstraZeneca to publish vaccine supply contract," Reuters, March 16, 2021

Read more