EU decides on Safe loan: Austria sees a need for action in the event of defense!

EU decides on Safe loan: Austria sees a need for action in the event of defense!

Österreich - The discussion about European defense skills and the supply of critical medicines are currently at the center of political interest in the EU. On May 26, 2025, the Federal Council's EU Committee met to discuss the Safe initiative ("Security measures for Europe"). This new EU instrument should give the Member States the opportunity to include up to 150 billion euros in loans to strengthen their defense industry, which should facilitate the procurement of important military systems. [ots.at] (https://www.ots.at/presseaus-sung/ots_20250526_ots0153/eu-amsrats-dundesrats-eu-daLehen-fuer-Investitations-in-the defense-Economic-Interior-Fuer-Oesterreich) reports that the repayments of these loans start from 2035 and until 2070 should be completed. However, it became clear to Austria that the safe program is "not interesting" from an economic point of view, since the country can use cheaper financing options on the market.

The committee discussed the role of Austria within this framework, especially with regard to the neutrality of the country and the possibility of common defense procurement. Experts expressed concerns about a decision made without the integration of the European Parliament, and the potential of an alternative clause in order to investigate Maastricht criteria.

critical medicines: an urgent concern

in parallel to the debate about the defense strategies, the EU is working on strengthening security of supply with critical drugs. A proposal by the European Commission, known as the "Critical Medicines Act" (CMA), is intended to transform medical care in the community by creating incentives to diversify the supply chains and to increase production within the EU. According to germany.represation.ec.europa.eu has the goal of combating bottlenecks, through the Covid-19 pandemic and geopolitical tensions were reinforced. Executive Vice President Teresa Ribera and EU Commissioner for Health Olivér Várhelyi emphasize the need to reduce the dependence on third-party countries and to expand the production capacities within the EU.

A central element of the proposal is the support of collective procurement by Member States, which is intended to improve access to critical medicines. Nevertheless, the financing remains a critical topic that is considered fundamentally positive, but not sufficient by the Ministry of Health.

long -term solutions for future challenges

On October 24, 2023, the European Commission presented a comprehensive package of measures to avoid future drug bottlenecks, which offers both short -term and long -term solutions. dsv-europa.de emphasizes that the legislative process could possibly take advantage of extensive regulations, which is considered insufficient. A new network for the production of important drugs is to be created, whereby the formation of an alliance for critical medicinal products is considered an important step by early 2024.

The EU faces the challenge of designing its pharmaceutical supply in both normal and in times of resilience. Measures for diversified production and the focus on international cooperation are essential in order to reduce the dependence on few providers. The EU-wide monitoring and the obligation of the registration owners to be neglected to high quality standards should not be neglected.