david63 wrote: 25 Mar 2021, 22:08
Basically, the way that I read it, the UK are better at negotiating pharmaceutical contracts than the EU are.
It's to do with the difference's in contract law between the UK and the EU. Under EU (Brussels) law contracts are fulfilled on best endeavours, giving both parties some manoeuvring room. Under UK law the contract is taken as absolute. In this case it has worked in the UKs favour, in other cases it has worked against the UK.
So basically (very much oversimplifying and using made up numbers) ... the EU signed a contract with AZ saying we will take 1.5Million doses per week, to which AZ agreed knowing their production levels were above this. Later the UK came along and signed a contract saying that they would take 1Million doses per week (and to ensure this they offered 50% above the price the EU negotiated).
Let's assume AZ can only produce 1.75Million doses per week so ... to fulfil the contracts AZ must provide 1Million doses to the UK (because the contract is absolute) which means that the EU only gets 0.75Million doses due to best endeavours. Since the EU signed contracts before the UK then you can understand why they believe they are being short changed.