The president of the VDMA says EU leaders should avoid focusing on debates around local content at this month’s gathering of heads of state and government taking place at Alden-Biesen, Belgium.
Bertram Kawlath, president of the German construction equipment and plant engineering trade association, says that such debates distract from Europe’s real problems – specifically its lack of competitiveness.
“The heads of state and government are meeting at a crucial moment to set Europe’s course towards growth and competitiveness,” Kawlath added. “The corrections made so far have been correct, but they are far from sufficient to address the geopolitical realities.
“Under no circumstances should this moment be used merely to engage in discussions about ‘local content’ that distract from the real problem: Europe is no longer competitive in many areas. Excessive and difficult-to-implement regulation, a weakening internal market and a lack of technological leadership – these shortcomings must be addressed.
“The initial successes in the areas of trade and bureaucracy reduction must not be jeopardised by new initiatives with new rules. Local content regulations are not a general panacea and will have severe side effects. Their implementation threatens to create new bureaucratic hurdles. In addition, global supply chains are coming under further pressure.”
“The competitiveness of industry cannot be strengthened by introducing rigid European value-added quotas. Potential obligations to source from Europe must not contravene WTO rules and the trade agreements that have just been concluded.”
“Buy European is only justified where the EU’s security interests are at risk and if there is no other way to prevent dependence on strategically relevant technologies and critical raw materials.”
