VDA Statement Budget Agreement and Growth Initiative

    VDA President Hildegard Müller on Budget Agreement and Growth Initiative:



    Berlin, July 04, 2024

    VDA President Hildegard Müller:

    "The agreement on the federal budget as well as the announcement and the contents of the growth initiative that are known so far are fundamentally welcome, but the decisive factor will be the dynamics of implementation and the final financing of the intended measures and projects.

    In addition to the announcements on reducing bureaucracy, improving depreciation conditions and the research allowance, the various impulses for a successful ramp-up of electromobility are also worth highlighting. Both the planned special depreciation for newly registered fully electric and comparable zero-emission vehicles and the increase in the cap on the gross list price for company car taxation for electric vehicles can make an important contribution to accelerating the ramp-up of e-mobility. In addition, the used car market for fully electric cars can also be strengthened in this way. The extension of the relief by the electricity price package is an important and correct signal, especially for small and medium-sized businesses, but it lacks effective measures for battery production and competitive prices for charging power.

    One thing is certain: the measures mentioned to strengthen the infrastructure are crucial for the future viability of Germany as an industrial location, but what they mean in concrete terms remains unclear at the moment. The commitment to ramping up hydrogen is an important signal in this context.

    The fact that the Federal Government wants to push forward an 'ambitious free trade agenda' is also a very central commitment that we very much welcome and support.

    In addition to these positive aspects, the resolutions are not ambitious enough overall in terms of strengthening the location and competitiveness. Necessary structural relief and simplifications for companies - especially with regard to internationally competitive corporate tax law - are not yet part of the package, nor is an investment premium. The federal government should set further priorities here in order to secure long-term and significant growth."

    Press & Digital Affairs

    Simon Schütz

    Head of Department