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A vaccine contract dispute between Pfizer and the European Union (EU) has resulted in Pfizer freezing billions of dollars in funds earmarked for air traffic control in Poland and Romania.
Eurocontrol, an intergovernmental organization that coordinates air traffic control management across Europe, notified Poland and Romania’s air traffic control agencies earlier this month that it was freezing the funds after Pfizer enforced an April court ruling in Brussels.
The April 1 ruling requires Poland and Romania to pay Pfizer about $1.5 billion and $640 million, respectively, plus interest and fees, for additional vaccine doses, per a 2021 contract signed between the European Commission — the EU’s executive branch — and Pfizer.
Poland and Romania refused further COVID-19 vaccine deliveries in 2022, citing falling demand for the shots, according to Bloomberg. Poland also cited financial pressures it was facing after taking in refugees fleeing the conflict in Ukraine.
Brussels Signal reported Poland sold or donated some of its surplus vaccine doses. According to Romanian political scientist Dragos Moldovean, “Romania was among the European countries with the lowest COVID-19 vaccination rates.”
These actions led Pfizer to sue the countries in 2023, resulting in the April 1 ruling.
In a statement provided to The Defender, the Warsaw Enterprise Institute (WEI) said that the case, which is still ongoing pending the two countries’ appeal, is being heard in Belgium because the EU’s contract is governed by Belgian law.
Polish and Romanian authorities have said they will appeal the ruling. Polish public broadcaster TVP World reported that Poland sought a delay in the enforcement of the April 1 ruling pending its appeal, but that the Belgian court rejected this request.
Dutch attorney Meike Terhorst, who is not involved in the lawsuit, called Pfizer’s actions “outrageous and unethical,” arguing that “it could potentially endanger the safety of flights to or from Poland and/or Romania” by depriving those countries’ air traffic control authorities of funding required for their operations.
Łukasz Wojdyga, director of the WEI’s Center for Strategic Studies, took a different view. He said that while Pfizer is exercising its rights under the law, which allow it to freeze the disputed funds even despite the expected appeals, the focus should be on the flaws in the EU’s contract. He said:
“Even if this form of enforcement is allowed under Belgian law, targeting the main source of funding for an institution responsible for air-traffic safety strikes me as disproportionate and irresponsible.
“At the same time, a creditor has the right to enforce a court judgment and protect the interests of its shareholders through any lawful means.
“For that reason, the main focus should not be on blaming Pfizer for pursuing its claim. It should be on how the contract was negotiated, approved, and signed in the first place.”
Some legal and policy experts who spoke with The Defender suggested that Pfizer had other options available to it rather than immediately freezing the two countries’ funds held in Belgium. Other experts suggest that the EU’s contract with Pfizer is, itself, invalid, as it was signed through a dubious and potentially illegal process.
EU hasn’t revealed Pfizer CEO text messages, despite ruling
The EU-Pfizer contract has long faced scrutiny. For Wojdyga, the central question isn’t whether Pfizer is entitled to collect what it is owed. It’s how European and national authorities allowed such a “large, expensive and one-sided agreement to be signed, leaving taxpayers to carry most of the risk.”
According to Brussels Signal, the 35 billion euro ($40 billion) contract between the EU and Pfizer “was one of the largest in EU procurement history.” It was signed amid “claims that the EU may have paid up to fifteen times the production cost per dose, raising concerns that billions in taxpayer funds were overpaid.”
There are also questions about how European Commission President Ursula von der Leyen negotiated the contract with Pfizer CEO Albert Bourla, and about potential conflicts of interest between the two parties.
Last year, the European Court of Justice ruled that the European Commission violated EU law by denying The New York Times’ request to review text messages related to the contract between von der Leyen and Bourla.
The European Commission claimed it didn’t have the text messages. But according to the ruling, the commission did not provide “plausible explanations” to justify “the non-existence or non-possession” of the documents. The commission previously claimed the texts didn’t qualify as documents, according to Politico.
In 2024, the European Court of Justice ruled that the commission’s decision to heavily redact key portions of COVID-19 vaccine contracts with pharmaceutical companies during the pandemic violated transparency rules.
In 2023, the European Parliament blocked an attempt to cross-examine von der Leyen regarding the text messages. The previous year, Bourla refused to testify before the European Parliament about the contract terms.
According to Brussels Signal, “scrutiny has been directed at potential conflicts of interest involving von der Leyen’s family,” as her husband Heiko “is the medical director at Orgenesisi, a biotech company that received EU funds and partnered with Pfizer.”
According to activist Frederic Baldan, CEO of CEBiz:
“Ursula von der Leyen, without any mandate, bypassed the committees and negotiated directly with Albert Bourla via Signal messages programmed to self-destruct. She thus circumvented the anti-corruption safeguards of her own Commission. The price increased in an inexplicable manner and the quantities ordered became insane.”
Wojdyga noted that the commission did not appeal the 2025 ruling in time, “making the ruling final.” Yet, the text messages still haven’t been released. Gheorghe Piperea, a member of the European Parliament, said that “the content of those messages remains secret to this day.”
Documents leaked in 2022 showed that U.S. and EU officials pressured European drug regulators to rush approval of Pfizer-BioNTech’s COVID-19 vaccine despite safety concerns.
According to Romanian political scientist Dragos Moldoveanu, questions remain over how the parties determined the number of doses each country would receive under the contract.
“Romania ordered 120 million doses of the vaccine, based on a ‘strategy adopted at the EU level,’ even though Romania’s population is less than 20 million people,” Moldoveanu said.
For Piperea, the EU-Pfizer contract “ought never to have existed” in the first place, because the EU took on powers it doesn’t have under the treaties of the European Union.
“The Commission violated the principle of subsidiarity that governs the shared competences of the Commission and the member states. Health policy falls within the competence of the member states, not of the Commission. The member states may be supported in these health policies, but they may not be supplanted by the Commission,” Piperea said.
This also means that if Pfizer believed the contract terms were violated, it should have sought damages from the EU, not from individual states like Romania and Poland.
However, suing the EU would have revealed “that the exceedingly narrow circle of persons who conducted the negotiations — von der Leyen … together with two or three anonymous directors from the European Medicines Agency — possessed neither the competence nor the mandate to bind the member states to payments,” Piperea said.
Wojdyga said all 27 EU governments were represented on the steering board, while the joint negotiating team with Pfizer “included the Commission and seven member states, including Poland.”
The member states were responsible for placing orders, making payments and accepting delivery under the terms of the deal.
However, “the decision-making process matters,” Wojdyga said. “Once the terms of an agreement were presented, a member state had only five working days to opt out,” after which its acceptance was considered legally binding.
He added:
“So, governments technically had a choice. In reality, they had only a few days to assess complex, multiyear financial commitments in the middle of a pandemic, under intense political pressure and amid fears of vaccine shortages. That put national governments under considerable time pressure and limited their ability to carry out a full legal, financial, and public health review.”
Baldan, who initiated a 2023 criminal case against Pfizer challenging the contract, said that in closed session, lawyers for Hungary and Poland confirmed they had “never given any negotiating mandate to von der Leyen” and that the vaccine orders were placed at the EU level and were “inexplicable” to them.
Baldan said the case resulted in a 1,000-page report by the Belgian Federal Police’s anti-corruption unit, finding that “there are sufficient elements to establish the offenses.”
However, the Belgian police handed over the investigation to the European Public Prosecutor’s Office, which moved to have it annulled.
“This is what allowed Pfizer to resume its civil proceedings and obtain judgments against the member states that refused to pay,” Baldan said.
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Has Pfizer endangered air traffic and public safety in Poland and Romania?
Questions remain over whether Pfizer’s freezing of Poland and Romania’s air traffic control funds held by Eurocontrol will put air travel and public safety in question.
According to TVP World, the frozen funds “are critical” because they make up more than 80% of the revenue of the country’s air traffic control agency, Polish Air Navigation Services Agency (PANSA, or PAZP).
Without the funds, the agency “could quickly lose financial liquidity, making it impossible to pay hundreds of air traffic controllers, whose work is essential for every passenger aircraft taking off, landing or safely flying through Polish airspace,” Brussels Signal reported.
PANSA could also lose the ability to maintain critical infrastructure, including radar installations and communication systems. “For ordinary citizens, this could mean cancelled flights and even the closure of Poland’s airspace,” Brussels Signal reported.
Romania Insider reported that the frozen funds equate to 0.2% of its GDP, posing “a significant burden at a time when the government is attempting to reduce the fiscal deficit.”
Piperea said the April ruling “arrived at a most inopportune moment in Romania, in the midst of recession and a major budgetary deficit.”
“Pfizer places the public in danger by leaving without funds the air-traffic control agency ROMATSA, and the state budget, which is already insufficient and cannot meet pensions, allowances, indemnities for persons with disabilities, and the like.”
Wojdyga said Pfizer’s actions are legal — but raise questions.
“I would not automatically equate the freezing of funds owed to Poland’s and Romania’s air navigation agencies with an immediate threat to passenger safety. Both agencies are still operating, and both governments have said they will protect their financial stability and keep services running. Pfizer also has the right to enforce its claims through lawful means.
“That said, targeting the main source of funding for agencies responsible for air traffic safety is bound to raise concerns, especially since neither agency was a party to the vaccine contract.”
“Pfizer is unlikely to close Poland’s airspace. By targeting PAZP’s revenue, however, it has shown how a poorly designed public contract can create problems far beyond the original subject of the agreement,” the WEI wrote.
Related articles in The Defender
- EU Broke Law By Refusing to Turn Over Text Messages Related to Pfizer COVID Vaccine Contracts
- EU Commission Hid Vaccine Contract Details From Public, Court Rules
- ‘Death Sentence for Millions’: WHO, EU Launch New Global Vaccine Passport Initiative
- Government Officials Pressured EU Regulators to Rush Authorization of Pfizer Vaccine, Leaked Documents Reveal
- Pfizer’s Lack of Transparency, Accountability ‘Creates a New Tyranny’
