Thursday

28th Mar 2024

Austerity cuts not to blame for Greek drug shortage, EU says

  • Cancer drugs. Roche: 'Shipments are halted to those who are not paying anything' (Photo: Derek K. Miller)

The European Commission has said its austerity measures are not to blame for a decision by pharmaceutical giant Roche to halt delivery of cancer drugs to Greek public hospitals. The company warned Italy, Portugal and Spain might be next.

In a fresh example of how the eurozone crisis is having an acute impact on citizens, Swiss firm Roche has halted shipments of cancer drugs and other medicines to a number of public hospitals in Greece after years of unpaid debts.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Roche spokeswoman Claudia Schmidt told EUobserver it took action in Greece after July but that unpaid invoices go back to 2007. Under the scheme, patients must buy medicine at pharmacies if they can afford them and return to a hospital to have the drugs administered.

She said her company is trying to be flexible: "Let’s say a hospital owes €2 million to €3 million, but they can pay €300,000, then they would receive that amount for a certain time period. Shipments are halted to those who are not paying anything."

She added the situation in Greece is the most acute but other crisis-hit countries might be next: "If needed, we will talk to all stakeholders in Spain to try to find solutions. There are also outstanding debts in Portugal and Italy, but not in the range of Greece."

Ireland, which like Greece and Portugal is under an EU-IMF bailout, has not had any trouble paying bills.

With Greek healthcare spending currently accounting for 10 percent of GDP, the EU, the IMF and the European Central Bank have told Athens to cut at least €310 million this year and an additional €1.43 billion in the 2012-2015 period. The troika of bailout sponsors have also told it to boost the use of generic drugs.

In February this year, doctors and other health care workers marched on the Greek parliament in protest over health cuts and scuffled with police.

Meanwhile, the European Commission is keen to wash its hands of the cancer drugs problem.

"It’s a commercial decision from a company," commission health spokesman Frederic Vincent told reporters in Brussels. "We would have to see if the countries make any specific request if this problem is conferred to Spain, Italy, Portugal," he added, noting that the EU has little-to-no powers over national healthcare plans.

Economy spokesman Amadeu Altafaj-Tardiosaid the EU-IMF bail-out has stumped up enough money for Greece to service its hospitals and that the shortage is a question of bad management in Athens.

"We’re not being insensitive. It’s a question of management of the budget by Greek authorities. Greece has money," he explained. "The financial assistance package decided one year ago covers the financial needs of the Greek state. Then how this is micro-managed is the full responsibility of the Greek authorities."

He added that the case woud be the same if the drugs dry up in Spain, Italy and Portugal.

Another EU official, speaking on condition of anonymity, commented: "It’s not European or international austerity that is causing this."

The contact added: "What has to be kept clear here is that before the crisis, Greece had some of the most expensive drugs in Europe - in the whole world - because of dysfunctions in the system, corruption in the medical profession ... It was an abuse of the Greek citizens."

EU task force for Greece ‘here to help, not control’

The head of an EU task force for Greece said on Thursday that the aim of the newly established body is to support the country as it attempts to slash its public debts. The team arrived in Athens as fresh figures put unemployment in the country at a record 16.3 percent, with 32.9 percent of young people out of work.

Brussels calls for still more austerity

Most states have slashed tens of billions from their public spending plans already, but this may not be enough according to an annual report from the EU executive.

Ordinary Greeks turning to NGOs as health system hit by austerity

As impoverished Greek citizens lose access to healthcare, they have started to turn to temporary clinics set up by the likes of Medecins Sans Frontieres and Medecins du Monde - clinics that had been intended to come to the aid of migrants and refugees.

Opinion

Why UK-EU defence and security deal may be difficult

Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

Latest News

  1. Orban's Fidesz faces low-polling jitters ahead of EU election
  2. German bank freezes account of Jewish peace group
  3. EU Modernisation Fund: an open door for fossil gas in Romania
  4. 'Swiftly dial back' interest rates, ECB told
  5. Moscow's terror attack, security and Gaza
  6. Why UK-EU defence and security deal may be difficult
  7. EU unveils plan to create a European cross-border degree
  8. How migrants risk becoming drug addicts along Balkan route

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us