Economic & Social Policy - vdma.org


On 27.08.2025, the Federal Cabinet adopted the draft law on the modernization of military service - Military Service Modernization Act (WDModG).
More than 3 million unemployed - these figures must be a wake-up call for politicians. Germany needs a turnaround in its labor market policy. Without a reduction in social spending and reforms, the situation will continue to worsen.
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.
Numerous machines, including many construction machines, are now subject to the extended new 50 per cent punitive tariffs. The VDMA criticises the poorly negotiated US tariffs and is calling for corrections.
The biogas package adopted at the beginning of 2025 is intended to secure the future of biogas plants and drive forward their flexibilization. Prompt notification is essential for this.
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 mechanical engineering industry has to cope with serious additional burdens: US tariffs are making business considerably more difficult, while rising social security contributions and high taxes are weakening companies. The government needs to act quickly.
The U.S. Department of Commerce added 407 new articles to the steel and aluminum lists, subject to 50-percent tariffs. Many machinery products are affected.
Exports in the mechanical and plant engineering sector fell by 3.4% year-on-year in the first half of the year. The tariff conflict between the EU and the USA has left its mark. Europe is now all the more challenged to fight for open markets.
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 number of employees in the mechanical engineering sector in Germany fell slightly in the first half of the year, but companies are holding on to their core workforces even in turbulent times.
After 100 days of the German federal government, there is less and less sign of a spirit of optimism. Real reforms and uncomfortable decisions are needed for a turnaround in the fall - now!
Mit Wirkung zum 1. Januar 2025 hat China eine neue Steuergutschrift für ausländische Investoren eingeführt, die ausschüttungsfähige Gewinne in förderfähige Projekte innerhalb des Landes reinvestieren. Die Regelung gilt bis zum 31. Dezember 2028.
The "tariff agreement" between the EU and the USA is hurting companies, the supposed planning security has been bought at a high price. In the end, it will probably be American customers who pay the bill. The EU and the German government must act now.
The Federal Network Agency has published the results of the August tender for offshore wind energy for two areas in the North Sea that were pre-investigated centrally by the Federal Maritime and Hydrographic Agency (BSH).
Companies in the machinery and equipment manufacturing sector pay well, but still are to be branded by means of the Collective Bargaining Compliance Law. The government is steering the wrong course here - it's the same for social spending.
Today, the Cabinet approved the amendment to the Carbon Dioxide Storage and Transportation Act (KSpTG).
The EU has updated the content of one of its two embargo regulations against Sudan. Among other things, two new companies have been added to the blacklist.
Employment is also declining in industry and as long as the federal government refuses to make real reforms to the labor market, the problem will continue to worsen. This is also reflected in the draft budget.
Production technologies are driving Germany forward as a high-tech country. The new Hightech-Agenda is heading in the right direction, but this progress is still only on paper.
In future, the Environment and Sustainability department will provide ten topic-specific newsletters for targeted information on environmental and sustainability topics.
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.
The planned law on compliance with collective bargaining agreements is a step in the wrong direction, placing a burden on small and medium-sized companies in particular. A clear breach of promise at the expense of the economy.
The VDMA urges the U.S. and EU to reach an agreement that ensures the certainty European machinery manufacturers need to operate in the U.S.
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.
A politically motivated ban on exports of rare earths from China is not compatible with a trusting trade relationship. The EU must show strength towards China and take action.
The ECHA has published a proposal to restrict chromium(VI) substances. Comments on this proposal can be submitted as part of a public consultation. The VDMA asks affected companies to participate.
The bill presented by the Federal Government for an immediate tax program to strengthen Germany as a business location has also been passed by the Bundesrat. The following now applies:
On July 18, 2025, the EU published its 18th sanctions package, which also includes measures against Belarus. It includes two amending regulations. Some of the tougher sanctions are also relevant for the mechanical and plant engineering sector.
On July 18, 2025, the EU published its 18th sanctions package against Russia. The measures (2 amending regulations) all come into force on 19.07.2025. Some of the tightened sanctions are also relevant for the mechanical and plant engineering industry.
The mechanical engineering industry is ready to invest further in Germany and Europe. However, this requires internationally competitive costs at the location. Political action must be taken now.
The industry associations of the German offshore wind industry and the non-profit OFFSHORE-WINDENERGIE foundation today published the expansion figures for the first half of 2025.
Over 100 guests came together in Berlin on July 9, 2025 to discuss the GEG, EPBD and the role of mechanical engineering in the building and heating transition. The focus: technology-open, practical solutions for implementation in partnership.
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.
The VDMA welcomes the EU Commission's plan to strengthen the data economy. However, any measures must remain voluntary and must not lead to forced data exchange and further bureaucratic burdens.
A restructuring of the EU budget must not mean new levies for companies. That would be an own goal for investments in Europe.
Good news for European companies: the EU's free trade agreement with Indonesia is an important success for more rules-based trade worldwide.
US punitive tariffs of 30 percent would be damaging for all parties involved, for the EU and the USA. Investments and reindustrialization would be slowed down.
The Chemicals Package includes the 6th Omnibus (‘Chemicals’), a proposal to provide ECHA with additional resources and an action plan, including ‘Providing Clarity on PFAS’.
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.
The debate on our social security systems must be conducted urgently and openly. It will not work without structural reforms. This requires the political will to act.
The new Trump tariffs are not only raising costs for the machinery sector, but creating confusion and uncertainty among manufacturers that export to the United States.
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.
In the third consultation meeting on the minimum wage adjustment on June 27, 2025, the Minimum Wage Commission unanimously passed a resolution to increase the minimum wage on the basis of a mediation proposal by the chairwoman.
The European Union remains ambitious in climate protection with a new emissions reduction target for 2040.
The adequacy decisions with the United Kingdom have been extended by the EU Commission for a further six months.
The EU wants to remain ambitious on climate protection. An ambitious target is the right thing to do, but it requires simple legislation and sufficient investment.
How can statistical reporting obligations be reduced? Digital services can help you. A free webinar by the Saxon State Statistical Office in cooperation with the Chemnitz Chamber of Industry and Commerce presents the e.CORE reporting procedure.
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.
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