Frank Vandenbroucke, Belgium’s deputy prime minister and health minister, has set out the case for the European Union to prepare its Anti-Coercion Instrument against US pressure over medicine prices. Vandenbroucke, an economist by training, published the paper on Thursday with Gloria Ghéquière, his deputy head of cabinet, through the Egmont Institute think tank.
The dispute centres on the Trump administration’s “most-favored-nation” policy, which has pressed European governments to pay more for medicines. The US has concluded MFN pricing agreements with 26 pharmaceutical companies and, in June, opened a Section 301 investigation into Germany’s alleged “persistent underpayment” for innovative drugs.
Vandenbroucke’s paper warns of an extreme rise in European drug prices and the possible withdrawal of medicines from the market. A forecast cited in the paper says prices could triple in countries used as benchmarks, while US prices would fall by just 7.5% to 15%.
One provision in Pfizer’s MFN agreement illustrates the financial consequences described in the paper: it requires the company to share added revenue from higher prices outside the US with the American government.
Vandenbroucke has urged the EU to ready the Anti-Coercion Instrument, often called its “trade bazooka”, for possible use against Washington.
He also said the bloc should be prepared to suspend tariff concessions granted to Washington under the Turnberry trade deal from August 2025 if the US imposes additional duties on European goods.
The call comes as European governments consider a collective approach. Ministers from Ireland, France, Germany, Italy, Denmark, Sweden, the Netherlands and Belgium met informally in Dublin last week to discuss creating an EU-wide pharmaceutical task force.
Nicolas Forissier, the French trade minister, warned against countries seeking their own arrangements with Washington. “If we don't work together and act as a team, countries are inevitably tempted to go it alone”.
Whether the EU will formally activate its Anti-Coercion Instrument remains unknown. The outcome and timetable of the US investigation into Germany have also yet to be determined.
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