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Business Policy

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"More employment is only possible with lower non-wage labor costs"

Non-wage labor costs must be significantly reduced, only then can more employment be expected. this requires a real structural reform in the social security branches.

Bureaucracy is a particularly heavy burden on SMEs

SMEs suffer particularly from the high bureaucratic burden. A recent study shows that the costs of regulations can even exceed the ROI. Information obligations and occupational health and safety requirements are particularly burdensome.

Dialogue on entry and stay for business purposes

The EU and the United Kingdom have decided to enter into a dialog on the entry and stay of persons for business purposes. The VDMA hopes that this will facilitate work assignments in the United Kingdom.

US tariffs harm trade worldwide

The majority of mechanical engineering companies are increasingly uncertain about the US market. An agreement on tariffs between the EU and the USA is now needed quickly. For the benefit of both sides.

"The Federal Government must act quickly!"

Federal Chancellor Friedrich Merz is sending out important industrial policy signals: reducing bureaucracy, tax incentives for investments and easier company start-ups. Now implementation must begin quickly.

"Setting the right course quickly: For Germany and Europe"

Friedrich Merz becomes Federal Chancellor at a particularly challenging time economically and socially. In the first 100 days, the course must be set for growth and competitiveness.

"First a turning point, now an epochal change"

VDMA President Bertram Kawlath calls for government reform to reshape the labor market. Security also means increasing industrial competitiveness.

“Thorough state reform necessary now to overcome paralysis in Germany”

The machinery industry is calling for a thorough state reform in Germany to increase industrial competitiveness. The EU, too, must get the economic development in Europe back on track.

"Europe is not a museum, we are high-tech"

Europe and its close relations with host country Canada shaped the opening of Hannover Messe 2025. VDMA President Bertram Kawlath emphasized the strengths of both partners.

"Structural reforms instead of social benefits"

The labor market is sending a clear signal: structural reforms are needed now instead of further social benefits, even if they may be unpopular.

VDMA: "Taxes and Social Contributions Must Be Reduced!"

The planned coalition agreement between the CDU/CSU and SPD must make Germany competitive again. To achieve this, significant reforms must also be made to taxes and social security contributions.

"Defence capability is based on a strong industry"

Europe's defense industry needs efficient value chains for components and production technologies. The European mechanical and plant engineering industry will play a key role here.

"Without a state reform, debt-financed investments will fizzle out"

The German parliament has cleared the way for investment in infrastructure and defense capabilities. The new federal government must also introduce far-reaching structural reforms to strengthen the business location.

Germany needs a location upgrade

The future German government is facing decisive decisions. Clear industrial policy impulses are necessary to ensure growth and innovation. A guest article by VDMA President Bertram Kawlath for CEO.Table.

Ten points for Germany as a competitive innovation location

Germany's innovative strength as a business location must be strengthened now. An alliance of leading business associations and the Fraunhofer-Gesellschaft jointly present ten key demands to politicians.

"Create a spirit of optimism for Europe and Germany!"

Germany and Europe need stability and medium-sized industrial companies need attractive framework conditions. The tasks for the new federal government are thus clearly outlined.

Only slight job cuts despite recession

The mechanical engineering sector is feeling the effects of the recession - yet companies only reduced their workforce by just under 1% in 2024. Even now, the core workforce is to be retained as much as possible.

Where do the parties stand on VDMA demands?

The VDMA has addressed extensive demands to politicians. What do the parties think? Our overview shows the extent to which the mechanical and plant engineering industry is taken into account in the programs for the federal election on February 23, 2025.

Courage for freedom - Tackle reforms!

The VDMA is calling for reliable framework conditions for growth and competitiveness in Germany in 2025. Together we can master the challenges of the future. You can find the details in the economic policy positions for 2025.

Structural reforms instead of crisis mode: Setting the course now

Less bureaucracy, a maximum tax rate of 25% and an efficient infrastructure are essential to ensure competitiveness. Germany will only remain a strong industrial location through bold reforms.

"An upgrade is necessary - not a tiny reform!"

The German parliamentary election campaign is all about taking clear positions and making demands. VDMA Vice President Verena Thies explains where the industrial SME sector is struggling.

"A wake-up call for a united Europe!"

Donald Trump's economic program could be a test of strength for Europe. This makes it all the more important that the EU now acts as one, especially on trade issues.

"Finally tackle obstacles and put national interests aside"

The European single market urgently needs reforms to improve and deepen it. Small and medium-sized companies are particularly dependent on this.

Courage to ensure freedom! - Germany needs real reforms

2025 is the year in which Germany must set the course for growth and competitiveness. It needs more courage to ensure freedom and rapid political reforms.

"The German government is finally aiming to ease the burden on SMEs"

The German government now also wants to relieve companies of CSRD reporting obligations. It would be an urgently needed step. Politicians must now do everything they can to convince the EU of this measure.

"EU must urgently relieve companies"

The European Deforestation Regulation is being postponed - an important measure to ease the burden on companies. Other EU regulations must now also be put to the test as part of the omnibus regulation.

"Industrial SMEs are rightly in focus"

Both the CDU/CSU and the SPD want to pay more attention to industrial SMEs. It is high time for this - but it must not end in new burdens for companies.

"We can't afford to fiddle around for six months"

US President-elect Donald Trump is threatening the EU with tariffs, while in Germany the traffic light coalition is falling apart. Difficult times for the industrial SME sector - which must not experience six months of political standstill.

"The eDeclaration is an urgent step towards reducing bureaucracy"

he posting of employees in Europe must not be a bureaucratic madness. The EU Commission's proposal for an eDeclaration is right, but further measures must follow.

"The limit of resilience has been reached"

Salaries in the mechanical engineering sector are already at a very high level. The pilot wage agreement in the metal and electrical industry will therefore push many companies to their limits.

"Trump 2.0 - a noticeable burden on trade looms"

Donald Trump's second term in office will be a greater challenge for the mechanical engineering industry than his first presidency. The USA remains an attractive market, but Trump's tariff plans will have a noticeable impact on trade.

"We need to put the brakes on taxes"

In industry, employment subject to social security contributions continues to decline. If you want to secure industrial jobs, you have to reduce the burden of social security contributions.

"Don’t wait - start better regulation now!"

Companies in Europe need significant relief quickly: less bureaucracy and laws that can also be implemented in practice. A VDMA position paper.

"Research allowance strengthens companies efficiently and sustainably"

The state should efficiently strengthen the competitiveness of the economy. The research allowance meets all the criteria for this and also strengthens companies in the face of unfair competition.

"Old priorities need to be reviewed"

The EU rightly wants to put the structure of its budget to the test. Scarce resources must be managed efficiently, innovation and competitiveness must be at the top of the agenda.

"Expansion of state research funding instead of scrappage scheme"

Tax money for the scrappage scheme is not being put to good use. It would be better to use it at the beginning of the value chain in production research. This would benefit jobs and technologies.

Don't put off reforms any longer

Transformation will only succeed if the framework conditions for Germany as an industrial location are improved. Reforms must not be put on the back burner any longer.

"Europe's competitiveness must become a top priority"

The "Draghi Report" rightly emphasizes how important economic success is for Europe. Open markets and free trade in particular are essential for companies.

"The Free Trade Agreement must finally enter into force!" 

The Mercosur states are on the move and Europe can benefit from this. That is why the EU's free trade agreement with Mercosur must finally come into force.

Economic policy priority is right, but strategy still needs work

The economic policy direction of EU Commission President Ursula von der Leyen's guidelines is right. However, a broader strategy to strengthen Europe as a business location for all companies is still missing.

"Economic growth must not be thwarted"

IG Metall's wage demands - in particular a 7 percent wage increase - are inappropriate in view of the tense economic situation.

"Positive news for Europe, but concerns remain"

The elections in France and the UK have some positive aspects for Europe - but the worry lines remain. France could become a weakened European partner.

"Debt brake and growth initiative - both are possible!"

In the 2025 budget, the Federal Government is committed to the debt brake and to incentives for growth. With the right prioritization of spending, both can succeed.

The work program for the second half of 2024

There will be less legislative activity in these months, because there are many institutional changes. The new EU-Commission is due to take office this year and needs time to define its priorities.

"EU taxonomy slows down innovation in mechanical engineering!"

Innovative mechanical engineering must be able to classify itself as sustainable in the EU taxonomy. This requires clarity and legal certainty, which has not yet been provided.

"Germany can do industry - if we really want to"

The debate about Germany as a business location is making waves. VDMA President Karl Haeusgen analyzes in "Ifo Schnelldienst" why the country is falling behind in the international rankings and what measures can help.

"Suspend Supply Chain Act, implement a practicable EU directive!"

In the transition to the EU Supply Chain Directive, the German Supply Chain Act should be suspended. Germany must not get bogged down in the minutiae of measures.

Shaping the future together

Over 220 leading figures from the European mechanical and plant engineering industry came together in Vienna to discuss the current challenges facing the industry and to exchange ideas on approaches to achieving climate neutrality.

Embrace and threaten - China's economic strategy

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.

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