Economic & Social Policy - vdma.eu

Approximately 40 percent of our exports to the U.S. are affected by tariffs on steel and aluminum derivatives. VDMA is working to find a solution to these trade barriers with our most important export market.

With the Digital Omnibus, the EU wants to tackle three laws at the same time and thus create initial relief for the industry. However, this is not enough to ensure Europe's competitiveness as a digital location.

At the CECE Summit 2025 in Brussels, leaders demanded measurable regulatory simplification to boost Europe’s industrial competitiveness.

Only 37 percent of mechanical engineering companies are bound by collective agreements. Our latest survey shows: The majority rely on operational flexibility instead of formal collective agreements.

Improvements to the pension package are urgently needed. The Junge Union and Junge Gruppe of the CDU/CSU parliamentary group have a clearer view than the federal government.

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The EU institutions have begun trilogue negotiations in order to reach an agreement on the eDeclaration. VDMA hopes that these negotiations will be concluded by the end of this year.

The draft of the NIS-2 Implementation and Cybersecurity Strengthening Act (NIS2UmsuCG) introduced by the German government was passed by the Bundestag today.

The European Court of Justice (ECJ) has only partially upheld an action brought by Denmark to annul the Minimum Wage Directive and declared only subparagraphs null and void.

The economic reforms announced by the German government are still a long time coming, while jobs are being cut. Companies need tangible relief now and not at some point in the future - including in the social and labor market areas.

The economic reforms announced by the German government are still a long time coming, while jobs are being cut. Companies need tangible relief now and not at some point in the future - including in the social and labor market areas.

The Fifth Ordinance on the Adjustment of the Level of the Minimum Wage (Fifth Minimum Wage Adjustment Ordinance - MiLoV5) was published in the Federal Law Gazette on November 7, 2025.

On November 5, 2025, the Federal Government's Cabinet for Reducing Bureaucracy adopted key points for reducing bureaucracy, which also affect occupational health and safety.

Industry in Europe must finally be noticeably relieved of bureaucracy. MEPs are therefore called upon to push through the sustainability omnibus package now.

The international climate summit takes place between 10-21 November in Belém, Brazil

The Bundestag has passed the bill to amend the Carbon Dioxide Storage and Transportation Act (KSpTG).

The mechanical and plant engineering industry is facing new challenges: Legislative changes, political decisions and recent court rulings are changing the employment law framework and presenting companies with new challenges.

CECE has launched the new platform www.compliantconstructionmachinery.eu, a key resource for customers, users, customs officials, and market surveillance authorities.

Disappointing what the cabinet has announced in terms of bureaucracy reduction. It lacks the courage to introduce significant relief for SMEs. This must change.

The European Parliament has postponed the extremely important reduction of bureaucratic demands on companies (Omnibus I) - a fatal sign for European industry. Nine major associations are calling on EU and federal politicians to find a solution.

The planned Collective Bargaining Loyalty Act will harm industrial SMEs because it will bring even more bureaucracy, even though companies pay fair wages. In addition, it only applies in Germany, which may give foreign companies an advantage.

Events and participation in events related to P2X are also intended to further advance the topic.

The Institute for Employment Research (IAB) has published the results of a company survey on the development of the burden of bureaucracy on German companies.

The event highlighted central funding programs at federal level and showed how companies can receive targeted support for innovation projects.

The European Commission presented its work programme for 2026. It sets the course for a forward-looking EU climate and energy policy.

On October 23, 2025, the EU also published and implemented its 19th sanctions package against Belarus. These are two amending regulations that extend the Embargo Regulation No. 765/2006.

On October 23, 2025, the EU published and implemented its 19th sanctions package against Russia. It consists of 3 amending regulations, which amend or extend the Embargo Regulations No. 833/2014 and No. 269/2014.

The focus of the EU-Commission's work program for 2026 is on reducing bureaucracy, affordable housing and increasing investment in defence.

Europe must become less dependent on raw material imports. The EU action plan, which aims to reduce dependence on China, would be an important step in this direction. The focus must also be on the European production of critical raw materials.

An ambitious EU climate target for 2040 also needs the right framework conditions for industry. A clear and uniform European position on the climate target sends the right signal for global climate protection measures.

Position of the Legal Affairs Committee of the European Parliament rejected by the plenary of the European Parliament on 22.10.25. New amendments must now be submitted.

No other industrial sector uses the research allowance as intensively as the mechanical and plant engineering industry. A new VDMA position paper shows ways in which the subsidy can be further optimized.

The EU member states must finally put their commitments to strengthening competitiveness into action. The proposals for adapting the Deforestation Regulation (EUDR) point in the right direction.

The Federal Ministry of Labor and Social Affairs (BMAS) has presented a plan to reduce bureaucracy in occupational health and safety.

As a strategic partner, Kazakhstan offers a wide range of opportunities for companies in North Rhine-Westphalia in the mechanical and plant engineering sector and in the supply of critical raw materials.

The US tariffs on steel and aluminum are a huge burden on the European mechanical engineering industry. They need to be renegotiated. This is because they contradict the spirit of the tariff deal concluded between the EU and the USA in Scotland.

Adoption of the position of the European Parliament's Legal Affairs Committee could trigger trilogue negotiations with the Commission and Council in the near future.

The EU stipulation that only battery and fuel cell cars will be permitted from 2035 jeopardizes the achievement of climate targets: The potential of modern combustion engines in combination with climate-neutral fuels must no longer be ignored

Ahead of the CBAM’s planned extension proposal at the end of 2025, VDMA has updated its position paper on CBAM calling for its abolition.

On October 10, 2025, the Bundestag debated the first reading of the government draft of a law to strengthen the autonomy of collective bargaining by ensuring compliance with collective bargaining agreements when awarding federal public contracts (Collective Bargaining Compliance Act).

Courage to act and reliability are crucial in the context of the EU sustainability omnibus package. EU policy must finally implement a tangible reduction in bureaucracy for small and medium-sized enterprises.

The U.S. Commerce Department has published American industry’s requests for inclusion in its second round of tariffs on steel and aluminum derivatives.

The EU-Commission has published the formal withdrawal of the AILD proposal in the EU Official Journal. The VDMA welcomes this official step.

The EU's Apply AI strategy is sending out the right signals: artificial intelligence must be used where it creates real benefits - in the real economy. Mechanical engineering is the linchpin here.

On the instructions of the Federal Ministry for Economic Affairs and Energy (BMWE), the BAFA has published a note on the implementation of the LkSG.

The EU is pursuing the right goal of minimizing its dependence on China in the steel sector. However, a holistic approach is required that takes the entire value chain into account.

The EU Commission has launched a survey on the Digital Omnibus—a law that aims to simplify EU digital regulations. The VDMA is participating and calling upon the EU to be bold in simplifying.

The German government's modernization agenda will only help if it is implemented directly and consistently. This means: noticeably shortening approval periods, making the labour market more flexible and no more German "gold plating" of EU requirements.

The VDMA NRW Executive Board discussed bureaucracy reduction, US tariffs, energy prices and procurement procedures with EU stakeholders in Brussels. The aim: better framework conditions and greater competitiveness for the mechanical and plant engineering sector.

Three political groups in the European Parliament are blocking the urgently needed simplification of sustainability reports. Europe's competitiveness must not become a plaything of ideological interests.