VDA Statement regarding EU internal market strategy

"With its Internal Market Strategy, the European Commission has formulated important starting points to strengthen competitiveness and efficiency.

Positive points to note are:

•    The Commission's intention to simplify future legislative initiatives and revise existing rules is definitely correct and must be implemented as quickly as possible. However, the Commission should have reinforced this claim with the concrete goal it also set itself in its Competitiveness Compass in January - to reduce the administrative burden on companies by 25% in the long term. It must be measured against this.

•    Furthermore, it is right to facilitate access to regulatory information and the online filing of documents in other Member States. This is a necessary contribution to the digitalization and simplification of cross-border business activities.

•    Small and medium-sized enterprises (SMEs) will particularly benefit from spending less time and money on bureaucratic regulations and gaining easier access to international markets. The planned measures, such as limiting the burden of sustainability reporting, are important steps.

•    Facilitating the temporary cross-border posting of workers is a good approach. This makes it easier to deploy skilled workers flexibly and promotes cross-border cooperation in services and maintenance work.

Besides these positive signals, there are also some areas that are either not given enough consideration or are not being addressed decisively enough:

•    The extension of regulatory relief to so-called 'small mid-caps' sets the upper limit of 749 employees far too low. This step falls far short of what is needed to provide tangible relief for small and medium-sized industrial companies in Europe. The VDA therefore calls for a clearly defined mid-cap category with an upper limit of 3,500 employees. This must be systematically considered in funding programs, regulatory relief, and reporting requirements.

•    A key point of criticism remains the lack of consideration for EU-wide harmonization of corporate taxation. The current 27 national tax systems represent a significant hurdle. The Commission should have initiated a comprehensive review and simplification of the tax framework. Greater harmonization would not only reduce compliance costs but also promote cross-border investment and strengthen the EU's global competitiveness.

•    A specific challenge for the automotive sector is not addressed at all: There are no uniform rules in Europe for the approval of vehicles with automated driving functions. This lack of coordination is a well-known problem in the European market. To ensure the smooth use of automated vehicles in different countries, uniform procedures and mutually recognized approvals are urgently needed.

•    The Single Market Strategy stipulates that in cases where 'the current system of standards is insufficient' (i.e., rules that apply equally in all EU countries), the Commission can propose specifications instead. However, the VDA believes that the priority of harmonized standards over specifications should be maintained. The European Standardization System is a key element of the EU's economic success, and this system must not be undermined by a parallel system. Industry demands clear criteria for determining when specifications can be used effectively."