EU Commission too often remains in denial of reality

The President of the German Association of the Automotive Industry, Hildegard Müller, has accused the EU Commission of denying reality and overestimating its economic policy. At the VDA's annual press conference, she explained that without economic strength, Europe would lose its international significance and assertiveness. "This realization has not yet arrived in Brussels."

While Müller sees the first positive signs from Berlin, she believes that the EU is over-regulating, which is costing competitiveness and playing into the hands of competitors. The result is declining attractiveness as a business location, a reluctance to invest and job losses.

72 percent postpone or cancel investments

VDA Chief Economist Dr. Manuel Kallweit presented the latest survey results among suppliers and medium-sized manufacturers. According to the results, 72 percent of the companies surveyed are postponing or canceling planned investments in Germany. 28 percent are relocating abroad, 19 percent are canceling completely and 25 percent are postponing their investments. Only 18% of the companies surveyed want to expand their activities in the EU. 22 percent prefer to go to China and as many as 28 percent to the USA

Pressure on the labor market too

64% of the companies in the survey cut jobs in Germany in 2025. 87% cite a lack of competitiveness as the main reason. Currently, every second company is reducing employment in Germany. Only 5 percent are increasing jobs in Germany. However, almost half of the companies cutting jobs in Germany are simultaneously creating jobs abroad. This picture shows that Germany and Europe are losing industrial substance.

Call for radical reforms

Müller was dissatisfied with the "Automotive Package" negotiated in Brussels. Announcements on technological openness were not enough - what was decisive was their practical implementation. Her demand: more market, less regulation. Instead of obligations and punitive mechanisms, market-based incentives are needed.

Appeal for a new culture of debate

Müller also warned against an increasingly polarized culture of debate. Deliberate misunderstanding of political proposals - reinforced by social media mechanisms - was blocking reforms. A comprehensive reform program therefore requires not only economic policy course corrections, but also a change in mentality and more willingness to make decisions. (aum)