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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 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.
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!
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.
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.
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 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 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 pension package with additional expenditure envisaged by Labor Minister Bas does not solve any of the problems, but rather increases them. Companies and employees need serious structural reforms.
The federal government's planned immediate tax investment program sends important signals to the economy. The improvement in the research allowance in particular is good news.
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.
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.
A lack of new buildings, stalled refurbishment projects and rising costs are making the transformation of existing buildings towards climate neutrality more difficult. Viable concepts and a simplification of construction and approval practices are needed.
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.
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.
The future of pension funding is the biggest gap in the coalition agreement between the CDU/CSU and SPD. Unpopular measures are also needed to make pensions fit for the future.
The VDMA reviews the coalition agreement with a focus on key issues such as energy, climate, digitalization, education, tax and labor market policy. The executive summary highlights opportunities, gaps, and necessary adjustments.
Dr. Dennis Rendschmidt, Managing Director of VDMA Power Systems, comments on the significance of the coalition agreement for the energy plant engineering industry:
The future governing parties have negotiated a coalition agreement very quickly. It contains some good ideas for reducing unnecessary bureaucracy. However, the tax relief for companies comes too late.
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.
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.
To ensure the competitiveness of the mechanical and plant engineering industry, the VDMA is calling for reliable economic framework conditions. A strong industry means a strong economy.
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.
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.
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.
With its new position paper, VDMA Building Technology appeals to politicians to set the course for a sustainable and competitive turnaround in construction and modernization.
Germany needs a stable government quickly. The results of the exploratory talks between the CDU/CSU and SPD may make this possible, but they avoid the necessary change that would help medium-sized industrial companies.
Germany must take responsibility for defense capability and security and invest heavily in defense and infrastructure. Time-limited and earmarked special funds are better than softening the debt brake.
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.
Donald Trump and Elon Musk may appear to be saviors - in reality, they are more like "wrecking balls". VDMA President Bertram Kawlath argues against this in an interview.
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.
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.
The expansion of digital, energy, and transport infrastructure is crucial for maintaining competitiveness. The VDMA calls for better coordination between the federal and state governments to accelerate this process.
The transformation to climate neutrality presents a significant competitive opportunity for Germany and Europe. To fully capitalize on this potential, emissions trading and climate protection technologies must be designed effectively.
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 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.
The end of the traffic light coalition threatens to place a further heavy burden on medium-sized industrial companies. The mechanical engineering industry expects a new government to provide stability and quickly adopt reforms to boost investment.
Saxony and Thuringia need stable state governments. Long stalemates in the negotiations will damage industry even more. Majorities are needed for good location policy projects.
Germany needs structural changes to its social insurance systems. Higher contributions are not the solution.
The contribution increases announced in Pension Package II mean further burdens for the economy. The younger generations and employers are expected to solve problems that politicians are not addressing strategically.
Brandenburg has written an economic success story. In the future, it will continue to need a state policy that attracts investment and skilled workers and does not create a climate of fear.
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.
In Saxony and Thuringia, constructive political majorities must now be found that are committed to a good location policy.
The federal government's promotional loan provides a high level of funding for particularly climate-friendly components, systems and solutions and a repayment subsidy of up to 60 percent.
Karl Haeusgen continues to see many advantages in Germany and Europe as a business location. But the flood of regulations from politics and the growing support for the AfD are causing the VDMA president great concern.
Export control is sometimes underestimated, sometimes overestimated. VDMA members can get advice and help from the VDMA to identify and comply with export restrictions and avoid unnecessary expense.
The VDMA Foreign Trade team supports VDMA member companies in the internationalization of mechanical and plant engineering. We provide you with practical support in all matters relating to foreign business.
Where answers count and expertise is required: At VDMA Photovoltaik Equipment, you receive all the services the industry needs in Germany. Professional and reliable, we are the drive and backing for your company. We catch the top themes and create values for you.
