France’s vaccine strategy: What has gone wrong ?

France’s vaccine strategy: What has gone wrong ?

Macro
Christopher Dembik

Head of Macroeconomic Research

Summary:  France is ranked last in Bloomberg's worldwide Covid vaccine tracker with only 516 people vaccinated since the campaign vaccination started on 27 December, 2020. Confronted with harsh criticism over its strategy, the French government has recently announced its intent to accelerate the process, but it is unlikely that it will be able to reach its target of around 23-25 million people vaccinated in June - which would imply an average of 140,000 people vaccinated on a daily basis seven days a week. With France already lagging behind in distributing the vaccine and prospect of supply hurdles and logistics failures, the risk is increasing that the country will have no other choice but to enact tougher restrictions for longer that will weight on the recovery.


What is wrong with France’s vaccine strategy?

  • The supply of vaccines appears to have been mismanaged with preference for the vaccine developed by a local player, the French pharmaceutical company Sanofi, that will not be ready until the end of 2021 after interim results showed a low immune response in older adults.
  • The implementation is bottlenecked through GPs instead of setting up mass vaccination centers, like in Germany and in Israel. To make things worse, it takes about 5 to 6 days to get vaccinated due to the introduction of a slow procedure of informed consent. People first need to see their GP for a pre-visit during which they are informed of all the aspects and consequences of the vaccine, which takes about 45 minutes to one hour, then they have four days for withdrawal.
  • Due to logistics failures recently observed, especially regarding the storage at ultra-low freezing temperatures, it is estimated that roughly 25% to 30% of the 200 millions doses purchased by France could be definitively lost.

France vs Israel: Two opposing strategies

 

France

Israel

Total number of vaccination doses administered

516

1.22 MILLION

Procurement

EU VACCINE PURCHASE

LATE PURCHASE (AUGUST)

 

NATIONAL

EARLY PURCHASE (JUNE, MODERNA)

Organizational structure and decision-making

CENTRALIZED

Defense Council (President, Prime Minister and Minister of Health)

DECENTRALIZED

Koupot Holim (health organization of workers, composed of four different schemes)

The role of the leader

NOT VACCINATED YET

SETTING EXAMPLE AS FIRST ISRAELI GETTING VACCINATION

Distribution

GP MODEL (mostly)

Digital experience close to zero

VACCINODROME MODEL

Digital patient experience: appointment confirmation SMS message, online medical follow-up after vaccination etc.

What should be done ?

Strangely, France’s vaccination strategy has mostly consisted in pandering to anti-vax. There is undeniably a strong distrust in vaccination in France, which reflects a broader problem of confidence in the health system after a series of scandals that have left a lasting stain on its reputation over the past thirty years. A study from IPSOS released in October showed the extend of the problem: only 54% of the population is willing to get vaccinated against Covid versus 87% in India and 67% in Germany. To get around this problem, the government opted for a slow protocol that will be costly economically and that is unlikely to increase public confidence in the vaccine. In fact, it is even the opposite that is currently happening. The slow rollout of the vaccine reinforces the idea, among anti-vax, vaccine-skeptics and conspirators, that there is something to hide or at least that the authorities are afraid of potential unexpected side-effects of the virus. Economically, this strategy, that is unique among developed countries, will be very costly. Assuming that France manages to reach its June vaccination target, which is not enough to achieve herd immunity, its means that some forms of restrictions will probably prevail at least until September/October this year. This is the optimistic scenario. The pessimistic scenario is that France may need to resort to tougher lockdown or to extend overnight curfew if the new mutations recently discovered in the United Kingdom and in South Africa spread further in the country, reviving the specter of a new recession. The sad reality is that there is no time to waste. The longer we wait for herd immunity (which might be around 70%-75% of the total population with the new mutations according to recent studies versus prior 60%), the higher the probability for a non-segmented RNA virus evolving and rendering the vaccine ineffective. France has already lost precious weeks in the covid battle and it will certainly takes time to deal with the supply hurdles that are emerging. But by speeding up the vaccination process, via the adoption of the “vaccinodrome” model (like in Israel), and opting for a more coercive strategy, which could consists in linking the access to social benefits/tax loopholes  to the vaccination (following the example of Latin America for child vaccination), France could certainly escape faster from the pandemic mess and at lower economic cost than with the current inadequate strategy.

Quarterly Outlook

01 /

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Chief Investment Strategist

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

  • FX: Risk-on currencies to surge against havens

    Quarterly Outlook

    FX: Risk-on currencies to surge against havens

    Charu Chanana

    Chief Investment Strategist

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
  • Equities: Are we blowing bubbles again

    Quarterly Outlook

    Equities: Are we blowing bubbles again

    Peter Garnry

    Chief Investment Strategist

    Explore key trends and opportunities in European equities and electrification theme as market dynami...
  • Macro: Sandcastle economics

    Quarterly Outlook

    Macro: Sandcastle economics

    Peter Garnry

    Chief Investment Strategist

    Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
  • Bonds: What to do until inflation stabilises

    Quarterly Outlook

    Bonds: What to do until inflation stabilises

    Althea Spinozzi

    Head of Fixed Income Strategy

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
  • Commodities: Energy and grains in focus as metals pause

    Quarterly Outlook

    Commodities: Energy and grains in focus as metals pause

    Ole Hansen

    Head of Commodity Strategy

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992