The Council of the European Union has published a discussion paper on scaling up the European biotechnology sector. The document, drafted by the TRIO Presidency and dated 24 July, serves as the basis for a discussion within the Competitiveness and Growth Working Group on 7 September in Brussels. The central question is which policy and regulatory instruments are needed to enable European companies to scale up to market more quickly.
According to the note, the European bioeconomy is a significant economic factor. In 2023, its size was estimated at up to 2,7 trillion euros, with 17,1 million jobs and 863 billion euros in added value. The sector grew faster than the overall economy over the past decade, according to the document.
From lab to factory
Despite these figures, the Council identifies a recurring bottleneck. Promising scientific developments struggle to reach commercial application in Europe. The memorandum refers to the report by Mario Draghi, which previously pointed out the need for large-scale investments in innovation and industrial transformation. As an example, the memorandum notes that 66 of the 67 European biotech companies that went public in the past six years chose to list outside the EU.
Other bottlenecks described in the memorandum concern the complexity of European and national regulations, making it difficult for companies to find a clear path to market, and a lack of scaling-up financing compared to regions such as the United States and China. The memorandum also points out value chains that are not yet sufficiently geared towards biobased products. These must compete with fossil variants, while market demand and supply chains often remain fragmented.
Expected Biotech Act II
The discussion paper is intended to provide input for the Biotech Act II, which the European Commission is preparing. Whereas the previous Biotech Act focused primarily on healthcare, this follow-up proposal is intended to extend to industrial biotechnology and biomanufacturing, with a regulatory framework that enables scaling up in those sectors. The legislation builds on the Bioeconomy Strategy and the Life Sciences Strategy presented by the Commission in 2025, with the aim of making the EU the most attractive location in the world for life sciences by 2030.
The Council puts two questions to the Member States. Which industrial and regulatory instruments are needed to build market demand and enable companies to scale up, and what can Member States themselves do at national level to implement those instruments in a coherent manner? A joint answer must take shape in September during the meeting in Brussels.
Source: Council of the European Union
Photo: Louis Reed / Unsplash
