PHSSR European Union Investing in Health 2025

11 Investing in Health for a Competitive, Secure, and Resilient Europe: A Strategic Call to Action The Partnership for Health System Sustainability and Resiliencelevels, and the accumulated immunity gap contributed to 58,000 reported measles cases in 2023.18 The resilience of our health systems—to prepare for, absorb, recover from, and adapt to future shocks—is critical, spanning health emergencies as well as financial, environmental, and security threats. Investing in resilient health systems is not just an opportunity; it is a necessity to promote long-term health, safeguard economic vitality, and ensure uninterrupted, equitable access to healthcare. By going beyond immediate healthcare needs and prioritising health system reforms that focus on prevention, early intervention, and effective disease management, Europe can ensure a healthier, more productive workforce, while simultaneously strengthening the region’s competitiveness in the global landscape and enhancing economic growth and societal wellbeing. B. GREATER INVESTMENT IN HEALTH IS NEEDED TO CLOSE THE EU’S EMERGING COMPETITIVENESS GAP The European Commission has placed competitiveness and strategic autonomy at the heart of its economic agenda, recognising that global challenges necessitate a more resilient, innovation-driven and future-proof Europe.19 The report by former European Central Bank president, Mario Draghi, on the competitiveness of the EU identifies several key themes for addressing economic challenges, including closing the innovation gap, increasing security, and reducing dependencies.20 Strengthening the EU life sciences sector Pharmaceuticals and medical technology are geopolitically important sectors and significant contributors to the EU economy, collectively known as MedTech and representing nearly €170 billion of Europe’s trade surplus in 2023.21,22However, with lower and more fragmented public R&D investment in the EU compared to the US, and given increased funding in China, there is a risk of the EU lagging in necessary innovations in health.23 Europe has lost 25% of its share of global R&D investment to other regions over the past 20 years, while its share of global clinical trials has fallen from 25.6% to 19.3%.24 The European Commission is preparing a new Strategy for European Life Sciences, recognising the need for action to ensure the EU remains a global leader in this field.25 The upcoming strategy presents an opportunity to strengthen the European life sciences sector, enabling the development of new innovations for patients and generating economic growth. Supporting the digital transition In her Political Guidelines 2024-2029, President von der Leyen emphasised the importance of supporting the green and digital transitions as a key element of the life sciences strategy.26 A similar perspective is reflected in the report by former Italian Prime Minister, Enrico Letta, highlighting the transformative potential of health data to drive research and development as well as inform more effective healthcare planning. The European Health Data Space (EHDS) is expected to play a pivotal role in unlocking these benefits—enhancing both the EU’s economic competitiveness and the wellbeing of its citizens.27 The EHDS Regulation will be instrumental in maximising the benefits of health data for the EU economy and society.28 However, careful implementation will be crucial to ensure robust data governance, protect individual privacy, promote trust among citizens and stakeholders, and guarantee equitable access to the benefits derived from health data use. Promoting productivity and growth A healthy workforce is the backbone of a competitive economy, and investing in health can sustain productivity and generate tax revenues among the EU’s ageing workforce.29,30 Driven by demographic shifts, the number of people in the EU labour force is projected to decrease by 12% between 2022 and 2070; in some Member States, the labour force will shrink by more than 25% in that period.31 In 2019, 9.7% of the EU-27 working age population and 15.7% of those aged 55-64 years not in employment had left their last job due to illness or disability.32 Investing in population