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EU-UK: What Brexit would mean for our industry

There has been much talk in the last weeks, months (possibly years) of the UK exit of the EU. It even has a term now: Brexit. All uncertainty was to be alleviated through Prime Minister David Cameron’s speech two weeks ago. Some said that he would outline the UK’s exit of the EU; others said he would fight against his backbenchers and state that the UK had its place now and forever in the EU. What resulted was an awkward mix of both with neither side happy (or unhappy), but where uncertainty is now firmly rooted- waiting to see what 2017 will bring. While there are many factors to hurdle for Mr. Cameron before reaching the said referendum- mainly an election in 2015- it is interesting to see how such a dramatic exit would affect the pharmaceutical industry and no doubt other global industries.

The UK is possibly one of the savviest countries when it comes to understanding how businesses work and how they interconnect. It is difficult to imagine that in the case of life science research there would be an exception. The industry is global in its very nature and many of the research networks, regulatory systems, foras for discussions are under the European flag. Before making any rash decisions the UK should, for example, look into how much its researchers and SMEs benefit from EU research programmes, such as those in FP7, joint programming or PPPs like IMI. What we are talking about here is not just money, which seems to be a core part, verging on obsession, of the current debate in the UK. We are talking about access to ideas. This is priceless. People can call that cheesy all they will but honestly think about it. As much as the UK has a history of extraordinary innovation so do many of its current European partners and it is by harnessing this common power of research and innovation that European research is and will continue to be the best. Not by parting ways, not by isolationism- many Eurosceptics may say that they will not lose access to such programmes, but believe me they will. How can they expect to become a freeloader to the system? This has not only been confirmed within the industry but also by the secretary general of the Association of Commonwealth Universities, John Wood who stated that “the UK would move from being at the centre of European research and potentially able to influence it to the outside”.

In terms of our industry it is of course more attractive to be in a block with the same rules throughout 27 countries than be established in isolation outside it. Some will again say that the UK will still have access to the single market. Yet, as much as there are things that do need to reformed in the EU, it is very difficult to see other EU members states allowing the UK to cherry pick what they like and do not, while they stomach all of it. The simple question that will be asked by the 26 other countries will be- how can you be in the single market if you do not accept its rules? And there will be more rules to come- it is the price of a simplification that works for all EU members. Another example is Trade. Negotiations for a free trade agreement with the US are about to start would the UK alone get the same deal- it is very doubtful. What chips would they have to bargain?

There have been some positives. Though there were no doubt some gloomy faces after last weeks budget result which may not have been a win for the EU in terms of research and competitiveness (details are still emerging as to what will be cut where) it may well have been for the EU itself with the UK firmly at the centre of negotiations. A trend that everyone hopes will continue, though possibly not always along the same lines.

A last point and of great interest for those involved in medicines throughout the EU would of course be where would the EMA go? You may recall that the EMA was nearly placed in sunny Barcelona and my guess would be that most within the EMA would not say no to such a change (nor would anyone having to go to regular committees there). But other cities could also do the trick- Rome for more sun, Paris (as a French ploy to annoy the Brits) or even Sweden’s Stockholm – I throw this one in on lines of my own nationalistic preferences.

Whatever the outcome we as an industry hope that the UK will continue to be at the heart of the EU we need the British if only for their sense of humour. As the Finnish Prime Minister stated a couple of weeks ago the EU without the UK would be fish without chips- a sadder blander place.

Richard Bergström

Richard Bergström was appointed as Director General of the European Federation of Pharmaceutical Industries and...
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