Although European countries paid for vaccines when they were still in the development phase, the slow distribution process is threatening the EU’s economic recovery
Lingering quarantine measures and problems with vaccination against COVID-19 have been causing a three-week exodus of investment capital from the EU, Bloomberg says. The EU is losing billions. Meanwhile, BlackRock, the world’s largest investment firm, warns that the situation “could damage trading strategies in the single currency bloc”.
“Europeans desperately need to accelerate the pace of vaccine implementation if they are to deal with the virus”, – said Seema Shah, chief strategist at Principal Global Investors Ltd. – “Bureaucracy and indiscriminate messages from governments have put pressure on the process.”
According to Bloomberg’s Coronavirus Vaccine Tracker, eight doses of vaccine have been administered per 100 people in the EU. By comparison, in the UK, where the authorities’ response to the pandemic is still questionable, 33 doses per 100 people have been administered.
“At the risk of sounding doom and gloom, we regret to reiterate that the low vaccination rate continues to jeopardise recovery in the eurozone”, – said Peter Vanden Hout, chief economist at ING Belgium SA in Brussels.
Airfinity Ltd predicts that new supply contracts as well as an increase in vaccine production will allow the EU to vaccinate 75% of its adult population by the end of August. This is two months earlier than previously estimated, but still too late from an investor perspective.
“These are the critical summer months”, – say Bank of America strategists. – “Losing the second tourist season is a risk for the EU”.