Five EU countries call for united response to US pressure on drug prices

Five European governments have called on EU countries to align their pharmaceutical pricing policies and avoid fragmented measures in response to growing pressure over medicine costs.

Belgium, the Netherlands, Luxembourg, Austria and Ireland — members of the “Beneluxa” initiative — said in a joint statement on Wednesday that they support cooperation in addressing “shared structural challenges” and warned against “uncoordinated individual national measures.”

The statement comes as the United States and pharmaceutical companies intensify pressure on EU countries over drug prices, which in Germany are roughly three times lower than in the United States.

The Trump administration is demanding that Europe pay higher prices for medicines while pursuing lower prices domestically.

US embassies across Europe have been tasked with negotiating national pharmaceutical pricing agreements similar to the deal reached with the United Kingdom.

The UK is now paying more for medicines in exchange for a temporary exemption from US tariffs.

Pfizer Chief Executive Albert Bourla, together with the chief executives of 30 other pharmaceutical companies, has requested an urgent meeting with German Chancellor Friedrich Merz.

Germany’s pharmaceutical industry lobby has acknowledged being “somewhat jealous” of the UK-US agreement.

According to reports, Bourla told Merz that his government’s plans to reduce drug prices had prompted Pfizer to reconsider its investments in Germany.

Eli Lilly and Boehringer Ingelheim have already paused investments in Germany.

US government officials are holding meetings with their counterparts in Berlin to discuss pharmaceutical pricing.

The Beneluxa group, however, warned against a fragmented European response even on pricing, an area that remains a national competence.

The countries said:

“In a geopolitically turbulent period, we believe that current developments in the pharmaceutical system require unity and coordination. Simplifying pricing and reimbursement procedures on the basis of mutual agreement and cooperation must ultimately lead to a more unified European approach to the pricing and reimbursement of new treatments.”

Health policy falls under the authority of individual member states rather than EU institutions, making collective action on pharmaceuticals more difficult.

Nevertheless, the five countries said EU governments share “a common objective to safeguard Europe’s solidarity-based systems” and should consider “deeper cooperation.”

“We must ensure that our pharmaceutical expenditure remains sustainable in order to preserve patients’ access to medicines, both now and in the future,” they added.

EU ministers are set to discuss pressures on pharmaceutical pricing at a meeting in Luxembourg on June 16, though member states appear divided into competing camps.

A government spokesperson told POLITICO that Sweden has invited “around 10” ministers to a breakfast meeting aimed at coordinating a response to geopolitical challenges facing the pharmaceutical sector.

Later that day, the entire bloc will gather for a working lunch on “strengthening Europe’s pharmaceutical resilience and autonomy” at the invitation of the Cypriot presidency of the Council of the European Union.

Meanwhile, the generic medicines industry argues that its products could help the EU withstand pressure from the United States and the pharmaceutical sector to pay higher prices for medicines.

A Medicines for Europe briefing obtained by POLITICO and shared with the European Commission and EU governments urges the bloc to accelerate the adoption of off-patent medicines that offer alternatives to expensive biological treatments. According to the document, the strategy could free up €10 billion in pharmaceutical spending.

The Beneluxa statement also said incentives for the sector would only “partially address our innovation challenges.”

While referring to “several potential” incentives under discussion, the statement did not endorse any specific proposal, arguing that such measures require “productive, collaborative and critical scrutiny” before being advanced as EU policy.

The European Commission has proposed extending patent protections for certain biotechnology medicines on the condition that they are manufactured in Europe.

Public insurers, patient groups and the generic medicines industry have warned that the plan would increase medicine costs.

Members of the European Parliament have also objected to the Commission presenting the proposal without conducting the formal impact assessment that normally accompanies new legislation.

Last month, the EU executive published an analysis estimating that the measure would cost public insurers €70 million per medicine annually.

The European Parliament, however, is conducting its own study into how heavily the proposal could burden national healthcare budgets.