VDA President Hildegard Müller regarding tomorrow's Presentation of the EU Commission's 2027 Work Program

VDA President Hildegard Müller: 

"The EU must now present a concrete plan that paves the way for economic strength, robust growth, and leadership in key innovation areas—the EU's 2027 work program must set the corresponding agenda. A three-pronged approach is needed: a strong location policy, greater entrepreneurial and technological freedom, and a smart foreign trade policy. Economic growth and climate protection are not mutually exclusive. Crucially, Brussels must create the conditions that enable investment in Europe and allow the jobs of the future to be created here. Strengthening the international competitiveness of the EU must therefore be a top priority. Anything that enables growth must be pursued systematically.

Brussels must finally improve the framework conditions for greater economic dynamism, international competitiveness, and growth. A key lever for achieving this is the reduction of bureaucracy. Yet, the notion that regulation is the secret to economic success persists in Brussels. Both the Draghi report and—more importantly—economic reality have long demonstrated that the exact opposite is true. It is time for Brussels to deliver. What matters is not the number of simplification initiatives the Commission puts forward, but the actual amount of red tape removed from businesses. While "omnibus" packages are a step in the right direction, they largely reflect a reactive regulatory approach: existing rules are patched up after the fact through exemptions, adjustments, and corrections. Simplification and the reduction of bureaucracy must not be limited to merely repairing overly complex regulations. Instead, existing rules should be systematically reviewed, unnecessary obligations eliminated, and new regulations—if they are truly necessary—designed to be practical from the outset. Furthermore, new burdens are constantly being created, which effectively negate any relief achieved elsewhere.

We are concerned that the Commission increasingly shifts the blame for a lack of progress onto the member states. Certainly, "gold-plating" must be avoided and dismantled, and additional bureaucracy within member states should be subjected to greater scrutiny. However, a significant portion of the compliance burden faced by businesses stems from European regulation itself. The Commission cannot simply offload responsibility onto the member states; it must, above all, take a much closer look at its own existing and future regulatory frameworks.

In addition to reducing excessive bureaucracy, Brussels must resolutely tackle other key tasks. These include the further development of the Capital Markets Union, the completion of the European Single Market, the conclusion of further free trade and raw materials agreements, and targeted measures to reduce energy costs.

The Automotive Package still urgently needs improvement, as the European Commission's current proposals fall far short. For the final negotiations with Parliament and the European Council, genuine technological openness and greater flexibility in fleet-wide CO₂ regulations are crucial. Anything that benefits the climate and preserves jobs must be possible. This includes not only battery-electric vehicles but also range extenders, plug-in hybrids, and combustion engine vehicles powered by renewable fuels. Necessary adjustments include, among other things, suspending the stricter utility factor rules for plug-in hybrids. The European Parliament and member states must therefore urgently make improvements.

The vast majority of future mobility will be electric. Therefore, the necessary EU-wide framework for the rapid ramp-up of electromobility must finally be established. This applies particularly to the comprehensive expansion of charging and hydrogen refueling infrastructure, the insufficient availability of which remains one of the key obstacles to market growth—especially for heavy commercial vehicles. A higher level of ambition in the AFIR, the relevant regulation for infrastructure development in Europe, plays a crucial role in this. In general, Brussels must finally focus more strongly on heavy commercial vehicles in addition to passenger cars: The review of the corresponding CO₂ fleet regulations should be carried out as quickly as possible in order to address the urgently needed adjustments in this sector as well.

In light of increasing geopolitical tensions and crises, Europe must act in close coordination with industry. In particular, its China policy must be further developed and based on a three-pronged approach of domestic strength, dialogue, and trade instruments. Germany, as an export nation, is especially dependent on policymakers taking this into account.“