Mechanical engineers accuse the federal government of blocking reforms

The mechanical engineering association VDMA vented frustration with the federal government at the mechanical engineering summit in Berlin. Reforms are being implemented far too hesitantly. VDMA President Bertram Kawlath recalled that almost exactly a year ago he said: “We are angry. Today I stand here and have to say: We are stunned." The mechanical engineers are stunned by the disputes in the government that repeatedly block urgent reforms. “We are also stunned by the increasingly visible decline in our location.”

There were no investments, bureaucracy continued to grow and social costs rose, said Kawlath. Many companies asked themselves why they should still invest in Germany. Every postponed investment and every “failed” reform weakens the location a little further. The federal government must deliver. Courageous reforms in the labor market and in corporate taxes are finally necessary. Referring to an IW study commissioned by the association, he said that with one hour of extra work per week, economic output could be 1.5 percent higher in just five years.

The black-red coalition is facing groundbreaking weeks. This involves, among other things, pension reform, reducing bureaucracy and making the labor market more flexible.

After years of economic weakness, the federal government expects higher growth of 1.3 percent this year. However, this is largely driven by the state spending billions on special funds on credit to modernize the infrastructure and for defense.