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A legal battle is unfolding between the pharmaceutical and cosmetics industries and the European Union over who should bear the financial burden of urban wastewater treatment. Industry leaders have taken the matter to the Court of Justice of the European Union, contesting a directive that mandates they cover at least 80% of the cost of removing micropollutants from wastewater.
The directive, in effect since January 1, 2025, is based on the "polluter pays" principle, given that over 90% of these pollutants stem from pharmaceutical and cosmetic products. Supporters, like Water Europe President Hans Goossens, argue that it is only fair for those responsible for the pollution to finance its cleanup.
However, industry representatives, including the European Federation of Pharmaceutical Industries and Associations (EFPIA), insist that costs should be more evenly distributed. EFPIA Director General Nathalie Moll has also criticized the EU for a lack of transparency in determining the 80% contribution, calling for a more balanced and inclusive approach.
Pharmaceutical firms warn that the directive could lead to soaring drug prices and shortages, with some medications, like metformin and amoxicillin, projected to see price hikes of 900% and 350%, respectively. Poland and multiple industry players, including major pharmaceutical companies, have filed 16 cases against the directive.
In response, the European Commission has defended its policy, stating that the impact on drug affordability and industry profits should be minimal. It also emphasized that EU member states have flexibility in implementing the directive to ensure fair and proportionate costs. The court's ruling could have major implications for environmental responsibility and drug pricing in Europe.
With information from Euronews.
