Without the pharmaceutical industry the EU trade balance would go from a surplus of €147 billion to a €47 billion deficit.

As European Heads of State meet in Belgium to discuss global competitiveness and strengthening the single market, Europe’s research based pharmaceutical sector must be integral to the discussions.

The sector is now a primary driver of EU industrial R&D growth, investing €55bn a year in European R&D generating €320billion in exports. It is highest contributor to the EU’s trade surplus – 30% bigger than all the sectors combined. The figures back up a recent report from European Commission which found that R&D growth is largely driven by the health sector.

Despite challenging times, the sector is uniquely placed to help deliver a stronger, more resilient and healthier Europe. It delivers high-value jobs, growth and investment while at the same time provides the tools to tackle global health threats as well as address Europe’s existing health challenges.

However, over the past two decades, Europe has lost 25% of its global share of investment to other regions. While the EU R&D spending grew on average 4.4% per year between 2010 and 2022, growth in the US was 5.5%, and in China 20.7%.

Since Mario Draghi’s report on EU competitiveness was published in 2024, rapidly changing geopolitics means companies are now operating in an even more challenging environment. The report recognised the sector’s strategic importance as well as its uncertain future in the context of fierce competition from ambitious nations, yet the vast majority of the report recommendations remain unheeded.

EU leaders can reverse the trends of the last few decades and ensure Europe is a first-choice location for investment in medicines innovation, skills and jobs.

As Europe’s leaders come together to discuss its economic future, EFPIA is proposing Ten Actions for Growth, Competitiveness, Security and Prosperity:

Nathalie Moll, Director General, EFPIA, said:

“When a number of the Heads of State are joined by Industry leaders in Antwerp this week, they will hear that this is a now or never moment for Europe to safeguard its industrial base, reduce exposure to external dependencies and ensure continuity of new medicines for its citizens.

The value that the pharmaceutical industry brings to the EU trade balance is unrivalled and critical to Europe’s future. yet too often the sector’s strategic industrial value is overlooked. Now is the time for action, if we are to reap the benefits this sector can bring as a key pillar on which to build Europe’s economic future.”