Poland has to pay PNL 6 billion to Pfizer: Brussels court ruled

Ministerstwo Zdrowia @MZ_GOV_PL

On Wednesday, 1st April, the Brussels Court of First Instance issued a ruling requiring Poland to procure COVID-19 vaccines from the American company Pfizer and to pay PLN 5.6 billion (approximately €1.3 billion). The Ministry of Health has indicated its intention to appeal this provisional judgment. The matter concerns a contract concluded in 2021 between the European Commission and Pfizer for the supply of COVID-19 vaccines. In 2022, Poland decided to withdraw from this contract.

Prime Minister Donald Tusk commented on the ruling via Platform X, asserting, “The government led by Morawiecki ordered COVID-19 vaccines that it did not collect and for which it did not provide payment. Consequently, Poland and all its citizens will be liable for a penalty exceeding PLN 6 billion due to the Law and Justice party’s unfortunate decision. Regrettably, this is not an April Fool’s joke.

The case was presented in a Brussels court, where the original agreement between the European Commission and Pfizer was signed. In 2021, the European Commission entered into a contract on behalf of its member states with Pfizer. Under this agreement, Poland committed to purchasing a specified number of vaccine doses according to an established schedule. However, in 2022, Poland declined to accept the remaining doses.

In September 2023, Pfizer initiated legal action against Poland for non-fulfilment of the contract. The Brussels court determined that the evidence presented did not reveal any irregularities in the public procurement process concerning Pfizer. The court’s ruling mandates that Poland must collect the remaining vaccine doses and remit a payment of PLN 5.644 billion.

Andrzej Domański, Minister of Finance and Economy, remarked during a press conference, “A verdict was issued yesterday in Belgium regarding the termination of the vaccine supply contract with Poland. This decision to terminate the contract was made by the Law and Justice (PiS) government under Mateusz Morawiecki. As a result, Poland will incur a charge of nearly PLN 6 billion.”

Minister Domański criticised the “incompetence” of the PiS government, highlighting numerous violations at the Ministry of Health. He stated that the National Revenue Administration (KAS) has already filed 10 reports of possible crimes.

A Belgian court ruled that Poland did not meet the conditions to terminate its purchase agreement with Pfizer, finding that Poland failed to demonstrate any abuse of dominant position by Pfizer. The court also concluded that neither the war in Ukraine nor the decline in COVID-19 infections justified the termination of Poland’s obligations.

Additionally, a September report from the Supreme Audit Office (NIK) questioned the nearly PLN 10 billion spent on COVID-19 vaccines, indicating that the Minister of Health had inaccurately estimated demand. Domański reiterated that there have been multiple legal violations at the Ministry of Health.

The Ministry of Health has announced that the court has ordered Poland to pay Pfizer the requested amount, including interest, and to collect approximately 64 million doses of COVID-19 vaccines. Poland has the right to appeal this ruling.

“Poland intends to use all available legal means to amend this judgment and protect its interests,” said the Ministry. They emphasised the need for a thorough legal analysis regarding the implementation and potential vaccine delivery schedule.

Health Minister Jolanta Sobierańska-Grenda stated that the COVID-19 vaccines received from Pfizer will be disposed of, and emphasised that the PLN 6 billion involved could fund critical healthcare needs, such as cancer medications and medical equipment.

Regarding the payment, the Minister confirmed that they are analysing options and will ensure due diligence over the next 60 days to select the best course of action for Poland. Additionally, a Brussels court recently ruled that Romania must collect unclaimed vaccines and pay €600 million.

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