Scheme to boost drug development and manufacturing given the nod under temporary rules
The European Commission has approved a French scheme that will allow all levels of the government to provide subsidies to any company working on drug R&D for Covid-19.
The €5 billion scheme was signed off on 5 June, adding to a tsunami of state support for virology and vaccine research worldwide.
French subsidies will come as grants, loans and tax breaks and the government in Paris may also guarantee losses, which could include those incurred from manufacturing a vaccine later shown to be ineffective. The scheme also includes a 15 per cent bonus for projects that include cross-border cooperation with other companies or research organisations.