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UPDATE 3-Berlin earmarks 9 bln euros to buy COVID-19 shots for Europeans

Tue, 09th Feb 2021 16:53

(Adds German health ministry, background)

By Michael Nienaber

BERLIN, Feb 9 (Reuters) - Germany is planning to spend
nearly 9 billion euros ($10.9 billion) this year to help procure
up to 635.1 million COVID-19 vaccination shots for its
population and other EU member states, a finance ministry
document seen by Reuters showed on Tuesday.

Delays to the EU's vaccine roll-out and concerns about new
coronavirus variants are making it harder for Berlin and other
European governments to ease pandemic restrictions. The hiccups
have caused some tensions between Brussels and Berlin.

Finance Minister Olaf Scholz's deputy Bettina Hagedorn
proposed to lawmakers in a letter that they should approve a
request by Health Minister Jens Spahn for an additional 6.22
billion euros to buy more doses, according to the document.

This comes on top of 2.66 billion euros already earmarked in
the 2021 budget.

The additional spending plans come after Scholz told the BBC
over the weekend that he was angry that more COVID-19 vaccines
were not ordered last year at a European level while EU chief
executive Ursula von der Leyen renewed her defence of the
European Commission's record on rolling them out.

A coalition source told Reuters the Bundestag lower house of
parliament's budget committee was expected to approve the
additional spending on Wednesday.

"For the federal government, obtaining COVID-19 vaccines is
of fundamental importance to get the pandemic under control,"
Hagedorn told lawmakers in the letter.

"In addition, a broad portfolio (of vaccines) is required so
that Germany will have effective vaccines with enough vaccine
doses for the various population groups, also in the case that
not all vaccines are approved," she added.

The Health Ministry will use the total funds of 8.89 billion
euros to buy up to 635.1 million vaccine doses as part of the
European Union's joint procurement plan and Berlin's national
efforts to secure additional shots, the document said.

All EU member states have agreed to procure vaccines under
the bloc's joint plan in an attempt to avoid a race among member
states which could have left poorer countries with fewer doses.

A German health ministry spokesman said Berlin would use 456
million euros of the overall 8.89 billion euros to procure
vaccine doses in bilateral agreements with companies. The lion's
share would be used as part of the EU procurement plan.

Under the EU agreement, member states are not allowed to
conduct parallel talks and sign side deals with vaccine makers
who negotiate with the EU.
($1 = 0.8258 euros)

(Reporting by Michael Nienaber;
Additional reporting by Francesco Guarascio in Brussels and
Andreas Rinke in Berlin;
Editing by Caroline Copley and Alison Williams)

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