Economic & Social Policy - vdma.org

Traditionally at the beginning of the year, the VDMA revises and updates its economic policy positions.

The US wants to reduce trade dependence on malign actors while reaching agreements with the EU and other trading partners with shared values. Does this signal a shift with implications for German industry?

The Fourth Ordinance on the Adjustment of the Level of the Minimum Wage (Fourth Minimum Wage Adjustment Ordinance - MiLoV4) was published in the Federal Law Gazette on November 29, 2023.

The draft of the Budget Financing Act provides for a reduction in the income threshold for receiving parental allowance.

The mechanical and plant engineering sector in Germany spent almost 8.7 billion euros on research and development in 2022. This was an increase of almost 6% on the previous year and also a record figure.

In the fight against climate change, stronger agreements than previously expected must be reached at the COP28 conference. The mechanical and plant engineering industry has the technical solutions and expertise needed to achieve the targets.

Every quarter, the CECE (Committee for European Construction Equipment) publishes current trends and information on the European construction equipment market and the European construction industry.

Bureaucracy in Germany has developed into a tangible disadvantage for the country as a business location. Several business organizations are therefore calling on the German government to impose a consistent moratorium on red tape at all levels - including in Brussels.

The event provided information on current tax issues and provided valuable information on key corporate tax topics as well as current tax projects of the German government.

Climate change is also having an impact on business models in mechanical and plant engineering. Many companies are therefore actively managing climate-related risks and opportunities and see this as a competitive advantage.

The European Parliament has given its approval to the Free Trade Agreement between the EU and New Zealand. The VDMA sees this as a positive signal for the importance of free trade.

The planned EU supply chain law would overburden small and medium-sized companies and would not help in the fight against child labor. The EU should learn from the experience with the German supply chain law and make its law more manageable.

The business situation in India and Brazil remains positive. The companies surveyed there expect significant nominal sales growth in 2023 and 2024. In China, on the other hand, sentiment is at a historic low.

The EU wants to strengthen European industry with the Net-Zero Industry Act. Mechanical engineering is to be recognized as an essential part of the net-zero value chain. The industry needs pragmatism in national implementation.

The bureaucratic burden is increasing, which is the wrong direction. What is needed is less, simpler and more digital. This is the demand of the VDMA and the title of the National Regulatory Control Council's annual report.

Sharing data is crucial for the success of digitalization. Manufacturing-X provides the perspective for a federative data ecosystem for Industry 4.0.

Africa is a promising sales market for mechanical engineering. Economic cooperation must therefore be the focus of German and European policy, otherwise China will dominate the market.

The mood among German mechanical engineering companies in China has darkened noticeably: Only 10 percent of the companies surveyed still rate the current business situation as good. Despite the current challenges, China remains a growth market.

On 9.11.2023, the Competence Center Climate & Energy hosted an online information event on the current security of natural gas supply in the coming winter of 2023/2024.

The Federal Cartel Office has received new powers of investigation and intervention, further, disgorgement has been simplified. The 11th Amendment of the ARC at a glance.

NRW's mechanical and plant engineering sector is not only suffering from the effects of global challenges, but also from the implementation of EU regulations, excessive bureaucracy and a lack of planning security.

The EU Data Act puts data traffic between companies on a new footing. For industrial SMEs, this is both an opportunity and a risk. Politicians must not leave companies out in the cold.

From China to climate change and transformation through artificial intelligence: the first day of the Mechanical Engineering Summit featured one thematic highlight after another.

After a long working day with his French counterpart, Federal Finance Minister Lindner concluded the first day of the mechanical engineering summit. He received much applause for his adherence to a policy against new debt.

The ongoing flood of bureaucracy and new regulations is slowing down medium-sized industrial companies and hindering innovation and investment. The industry is skeptical about 2024 and is calling for serious political reforms.

The wars in the Middle East and Ukraine also dominated the opening of the 14th German Mechanical Engineering Summit. VDMA President Karl Haeusgen and Vice-Chancellor Robert Habeck placed Germany's economic situation in the global political context.

At the VDMA's political evening, high-ranking representatives of German industry met with German politicians to discuss the challenges facing mechanical and plant engineering and the future of Germany as an industrial location.

VDMA advocates progress in the talks between the EU and Thailand. The abolition of tariffs and the removal of technical barriers to trade can give trade a boost.

At the 14th German Mechanical Engineering Summit, discover the Industrial Metaverse: Future of Digital Networking. Experience opportunities and challenges, discuss potential for sustainable business and actively shape the future.

Germany and Italy maintain close economic relations, especially in mechanical engineering. The new VDMA office in Bologna is intended to be a local point of contact.

Partner, competitor and system rival: China's role has changed dramatically. While still enormously important as a sales market, Beijing is at the same time making clear its claim to determine the rules of global trade.

The EU's Global Gateway Initiative has the potential to become a real alternative to the New Silk Road. However, what is necessary for this is the willingness of the EU to participate in the financing of infrastructure projects in the Global South.

During the EU-U.S. Summit, the EU and the U.S. were unable to reach an agreement on the steel and alumunium dispute. VDMA continues to urge the two sides to strike an agreement by the end of 2023.

The industrial strategy of the German economics ministry analyzes the situation accurately, but does not draw the right conclusions. It must not be a blank check for an industrial policy initiative that is not market-oriented.

VDMA study shows need for catching up (or pent-up demand) for German financing offers

"Inconceivable, appalling, a breach of all civilizational achievements and hardly bearable" - the VDMA and its presidium condemn the terrorist attacks as well as anti-Semitic reactions and emphasize their support for Israel.

The EU-Commission has published a proposal for a Regulation to combat late payments. We welcome the objective, but demand that contractual freedom be taken into account.

The EU and the US must quickly resolve their trade disputes. Long-term solutions are needed in the tariff dispute and on the issue of conformity assessments. Industries on both sides of the Atlantic would benefit from this.

Excessive regulations and reporting requirements have become an unbearable burden for companies. The EU Commission wants to make cutting red tape a focus of its work. But it is not aiming for a major breakthrough.

The political measures to solve the labor shortage are insufficient. A quick course correction is needed: longer working lives, raising the retirement age, increasing weekly working hours.

The Growth Opportunities Act is an important step toward modern corporate tax law. The mechanical and plant engineering sector is now waiting for swift implementation. The law must not be talked up and become the subject of political tie-in deals.

The tariff dispute between Europe and the U.S. could soon flare up again if the two sides do not quickly find a lasting solution. The VDMA and a good dozen industry associations are calling for a final settlement of the dispute.

The increasingly shrill tones in the debate about Germany as an industrial location are counterproductive, according to VDMA President Karl Haeusgen. In an interview with the newspaper WELT, he stresses that "Germany is not going under."

India's importance for the European mechanical and plant engineering industry is increasing all the time. Exports are growing and numerous companies, including those from Germany, are expanding their involvement in the country. The VDMA is counting on a free trade agreement between the EU and India.

The VDMA lists the construction sites that must be eliminated to strengthen the country's competitiveness. VDMA President Haeusgen warns against doomsday scenarios and calls for honest announcements.

VDMA had meetings with the EU-Commission to advocate for a durable end to the steel and alumunium dispute and for a EU-US Mutual Recognition Agreement on Conformity Assessment for machinery products.

Joint offer by Germany Trade & Invest (gtai), the Federal Foreign Office (AA) and the German Chamber of Industry and Commerce (DIHK)

China's importance for the mechanical engineering sector remains high, but the government's aggressive economic policy poses major challenges for SMEs. The China issue will also be omnipresent at the 14th German Mechanical Engineering Summit.

Machinery and equipment manufacturing remains a highly attractive employer. Skilled workers are offered excellent job options.

Export credit guarantees are to be linked to strict climate policy requirements. This will lead to considerable disadvantages for German exporters. The climate policy sector guidelines must therefore not enter into force on October 1.