French President Emmanuel Macron has criticised Austria and Denmark for their declaration of wanting to cooperate with Israel in the production of vaccines. This comes on the heels of Austria’s eastern neighbours’ decision to approve the Chinese and Russian vaccines. According to M. Macron, European states should not attempt to forge alliances outside the EU perimeter but rather concentrate their efforts to centralise solutions within the EU frameworks.
M. Macron is wrong on multiple counts. Firstly, centralisation is very often less effective than states competing to get best results. Older readers will recall the famous/infamous 5 year economic plans of the Warsaw Pact countries. It was a recipe for economic disaster, which took decades to unfold but at the end, in 1990, unfold it did. Federal countries like the United States have honed the centralist/state model for nearly 250 years, and they are still bickering about it, witness the recent decisions of some states, led by Texas, who will drop Covid measures next week.
Furthermore, the EU bureaucracy has proven inept at managing the procurement process. Britain and Israel, free from centralised shackles have understood very early that vaccination was a health and economic must that had to be approached in a non-conventional fashion. Britain was lucky enough to have left Europe at just the right time to be able to make preparations and orders independently, while Israelis, who can’t usually be criticised for over-paying, decided to do just that in their quest for national vaccination.
Picture this. By some counts, one day of lockdown in the UK costs £500m-1bln to its economy. The average double dose of vaccine costs, say, £25. This means that the cost of all the vaccines to cover an entire country can be financed by avoiding a few, extra days of lockdowns. Which means that the cost paid per dose is completely irrelevant, yet the EU allegedly spent weeks if not months bickering on price. These delays will translate into a 3-6 month delay in vaccinating their populations, which will costs EU countries hundreds of billions of Euros. A CEO making such a mistake would be fired by his board. A prime minister would face his angry voters. What are the consequences of the lack of foresight of the EU executives?