Economic & Social Policy - vdma.eu

The Supreme Court's ruling against the US government's reciprocal tariffs is an important signal for rules-based trade. Nevertheless, uncertainty remains for European companies.

Dr. Timo Würz outlined the state of European thermal process technology in the face of a challenging global environment in a presentation at the IHEA Annual Meeting.

On his first trip to China, Federal Chancellor Merz is being challenged: The basic prerequisite for cooperation is fair competitive conditions. Companies are coming under increasing pressure because China is systematically distorting competition.

The EU Pay Transparency Directive comes at an inopportune time. Small and medium-sized enterprises in particular are being unduly burdened with new reporting obligations. The German government must work hard to abolish this directive.

VDMA calls on the EU and Australia to swiftly conclude the Free Trade Agreement and thus send another positive signal.

The EU and India have concluded negotiations on a Free Trade Agreement. This could be a “game changer” for the engineering industry. What steps are now necessary for the agreement to enter into force?

Employment in the mechanical engineering sector fell by a good 2 percent in 2025 compared to the previous year. In addition to the global economic downturn, the location problems in Germany and Europe are a key driver.

Geopolitical tensions, tougher competition and new trade barriers are challenging the European mechanical engineering industry. Against this backdrop, VDMA, ZVEI and Deutsche Messe AG are organizing the European Policy Reception at Hannover Messe 2026.

In many cases, Europe is no longer competitive as a business location. The EU must therefore not get lost in 'local content' debates. Instead, it is about setting Europe's course towards growth and competitiveness.

Inland shipping transports goods efficiently and in an environmentally friendly manner using ships on rivers and canals. It is set to become even better with even cleaner propulsion systems.

China’s 15th Five-Year Plan for 2026–2030 is expected to be officially released during the annual “Two Sessions” meetings in Beijing in early March. Even before publication, the main policy directions are already emerging.

The EU-Parliament has finalized its recommendations for a 28th regime. Among other things, the Parliament supports a broader scope of application and a minimum capital requirement of one euro.

Europe needs a resolute location policy and market surveillance in order not to fall behind. To ensure economic strength, innovations must be protected, fair rules enforced and open markets defended.

The EU-Parliament has referred the agreement with Mercosur to the EU-Court of Justice for review. From VDMA's point of view, the trade agreement should nevertheless be provisionally applied in the near future to create planning security.

The mechanical and plant engineering industry has continued to increase its spending on innovation even in difficult economic times. There is now a need to strengthen instruments such as research allowances and joint industrial research.

The EU report on the internal market clearly shows the urgent need for action in Europe. The internal market remains fragmented, private investment is declining and the EU is making slow progress in reducing regulatory hurdles.

While the economic situation is serious, the trade unions continue to block urgently needed labor market reforms. Sticking to the status quo, such as the rigid eight-hour working day, is irresponsible in the current situation.

Germany as a business location needs new impetus for growth and a modernization of the state and society more urgently than ever before. Genuine economic policy reforms instead of small-scale crisis management is the motto.

Germany as a business location needs new impetus for growth and a modernization of the state and society more urgently than ever before. Genuine economic policy reforms instead of small-scale crisis management is the motto.

The industry associations of the German offshore wind industry and the non-profit foundation OFFSHORE-WINDENERGIE today published the expansion figures for 2025.

The EU's free trade agreement with India sends out a very important signal in favor of rules-based trade and against the law of the jungle. The elimination of customs duties and technical barriers to trade provides an urgently needed boost to competition.

As of 1st January 2026, Phil Layton of JCB and CEA is the new President of CECE. He is taking over this leadership role for 2026 and 2027.

The European Parliament's Mercosur decision is completely incomprehensible and complicates the process considerably. Small and medium-sized industrial companies urgently need EU free trade agreements that also come into force.

European agricultural machinery and tractor manufacturers are ready for climate-friendly fuels and sustainable drives.

VDMA Executive Director Thilo Brodtmann on the signing of the Mercosur trade agreement by the EU.

Europe must respond unitedly to US President Trump's new tariff threat - and also examine trade policy measures such as the anti-coercion instrument. Europe must not allow itself to be blackmailed.

The time for reform debates is over - politicians must act now! Germany's industrial SMEs urgently need relief. And the EU must strengthen the internal market. Populist slogans for 'Europe first' do not help.

During its EU Presidency, Cyprus plans to focus on issues such as defense, migration and Ukraine, but also on topics that are particularly relevant to mechanical engineering.

The building sector has untapped potential for CO2 savings. VDMA Sanitary Technology and Design is therefore calling for efficient hot water use to be anchored in the German government's climate protection program.

materialHUB is a free and publicly funded online platform for publishing and researching material data according to technical characteristics and (environmental) regulatory aspects. https://www.materialhub.de

The VDMA interest group materialHUB is working on incorporating current environmental and sustainability aspects into the research platform and optimizing the user-friendliness of material research and data provision.

Suppliers who share information on materials, material classes and application areas benefit from the visibility of their commercial offerings and research activities and meet the growing information needs of their customers.

The EU-Commission's proposal to combat overcapacity in the steel sector has been presented. In the view of the VDMA, this proposal must also involve European steel consumers, who must not be burdened with additional costs and more bureaucracy.

The free trade agreement between the EU and Mercosur is of the utmost importance for European industry. The EU Council of Ministers must act now and give its approval.

The EU Commission wants to simplify ESG requirements with the Omnibus Regulation. This update shows the current status and possible relief for companies.

The tax burden for companies in Germany is 30 percent, compared to less than 24 percent for bettors from other OECD countries. An early reduction in corporation tax would therefore be an urgently needed step.

Jobs are also being cut in mechanical engineering because the framework conditions are not improving. Politicians are failing to do their homework: Reduce bureaucracy and taxes, make the labour market more flexible.

Europe's and Germany's competitiveness is under threat: weak investment and political inaction are jeopardizing the mechanical and plant engineering industry. Fast, decisive reforms are needed now.

The European Commission has established a platform to make it easier for European companies to access strategic raw materials.

On January 1, 2026 and over the course of next year, various changes will come into force in the areas of the labor market, old-age provision, health and care.

The Act to Stabilize Pension Levels and Equalize Child-Raising Periods has been published in the Federal Law Gazette. This concludes the legislative process.

The electricity tax rate for the manufacturing industry will be permanently reduced to the European minimum. The law is a first step towards effectively reducing electricity costs.

On December 17, 2025, the Federal Cabinet decided to once again extend the period of entitlement to short-time working allowance by decree.

The EU wants to include more products in the scope of CBAM. This means more effort and costs for European companies - a wrong signal in times of growing global trade disputes.

The trilogue meeting on the eDeclaration scheduled for 8 December has been postponed. VDMA is committed to ensuring that negotiations on the final wording are concluded as soon as possible.

The Council must now deliver and ratify the Mercosur trade agreement. After years of negotiations, a clear commitment to free trade and reliable partnerships is needed.

The EU sustainability omnibus package was adopted with the urgently needed adjustments. A strong signal for more legal certainty and practicable solutions for our small and medium-sized industry.

The Federal Ministry for Digitalization and State Modernization launched the EinfachMachen portal on 12 December 2025.

The time to act is now. Bringing forward the tax cut for companies would therefore be an important signal from politicians.

The EU-Commission has published a proposal for a Regulation on the establishment of European Business Wallets. What are the main elements of this proposal?