European Policy - vdma.eu
European Policy
For of a competitive Europe

Open borders, free trade and common values: Europe is the home market for the machinery and equipment manufacturing industry, one of the largest industrial sectors in the EU economy. Maintaining Europe's competitiveness is a top priority.
Therefore, VDMA is committed to a strong and capable EU.

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The EU has a range of trade policy instruments at its disposal to ensure a level playing field for German and European companies in trade with China.
Two Committees of the European Parliament have approved the negotiating mandate on the eDeclaration. VDMA hopes that the trilogue negotiations between the EU institutions can now begin promptly.
Instead of promoting innovation in the single market, EU digital laws have become hurdles in many places. The EU legislator must therefore use the digital omnibus to fundamentally correct digital regulation.
EU Commission President Ursula von der Leyen is building on Europe's industrial strength. To achieve this, however, the poor customs deal with the USA must be renegotiated.
The agreement on CBAM simplification is an important step, but the extension to downstream sectors should be taken off the table. And the technical specifications are still missing.
The EU and Indonesia reached on 13 July 2025 a political agreement on a Comprehensive Economic Partnership Agreement (CEPA). However, several issues require further negotiations.
The planned EU Deforestation Regulation urgently needs to be revised and its launch postponed by at least two years. It is poorly crafted and bureaucracy at its best, criticizes the VDMA in a letter to the Commission.
The EU is finally making progress on the Mercosur agreement. The decision to treat the trade part separately is particularly helpful. Now it is up to the EU Council and Parliament.
The EU internal market for products is regulated by the NLF and its 30 harmonised legal acts. The European Commission is currently planning to revise the NLF. For this to be successful, the focus must be on simplification.
The EU proposes tariff exemption for US products - while punitive tariffs are extended to European machinery. The EU Commission urgently needs to renegotiate; mechanical engineering products must be permanently exempted from sectoral tariffs.
The EU Commission defends the 15 percent "tariff deal" with the USA. But more and more products are falling under the much higher steel and aluminum tariffs. The VDMA is urgently calling on the EU Commission to work towards improvements.
The EU's omnibus package on sustainability is intended to protect small and medium-sized industrial companies from excessive reporting obligations. This goal must no longer be watered down in the European Parliament.
The agreement in the customs dispute creates planning security in the short term and averts an incalculable trade war. However, the agreement also reflects the balance of power. The EU must therefore now consistently strengthen its competitiveness.
VDMA emphasized during its discussions in Brussels in particular the importance of better framework conditions so that Europe can compete with China and the United States.
The first round of negotiations on a Free Trade Agreement between the EU and the UAE took place in June 2025. VDMA hopes that this will result in an agreement to abolish localization requirements, amongst other things.
A restructuring of the EU budget must not mean new levies for companies. That would be an own goal for investments in Europe.
The EU Commission wants to reduce bureaucracy for small-mid caps (SMCs) - for example in the GDPR, the F-Gas Regulation and the Battery Regulation. Larger companies should also benefit - for example through the digitalization of documentation obligations.
When it comes to raw material stocks in Europe, a broad perspective is needed. Stockpiling is one component, the circular economy another.
Legislators must not ignore the reality of everyday industrial life, and this also applies to the EU Commission's Chemicals Action Plan.
The EU Commission announced that it would simplify the rules on State aid in order to promote the development of clean energy, decarbonization and net-zero technologies.
The EU omnibus package is intended to significantly reduce the bureaucratic burden on companies. Now the package must no longer be torpedoed. Bureaucracy must not become an obstacle to innovation.
Canada wants to expand its economic partnerships - an opportunity for Europe. It is crucial that the CETA free trade agreement is finally implemented in full.
Nine major business associations from Germany have issued a joint appeal warning that progress on cutting red tape in Europe should not be jeopardized.
Events
What are the EU developments for EU companies? The year 2025 marks the last reporting year before full implementation from early 2026.
The EU promises companies less bureaucracy and is relying on the so-called “Omnibus” approach – for example, to simplify sustainability reporting or to reduce the bureaucratic burden on Small Mid-Cap companies.
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Register now and read more
Don't have an account?
If your company is already a VDMA member, you can register easily.
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Are you interested in becoming a VDMA member?
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