Thilo Brodtmann, Executive Director of the German mechanical engineering association VDMA, comments on the proposal by the European Commission regarding controls on foreign investment in Europe:
“With its proposal on investment screening, the European Commission is jeopardising Europe’s good reputation as a location for international investment. The criteria for industry sectors deserving protection are so blurry that member states could block company takeovers at will. There is a contradiction between the EU constantly complaining about the lack of investment in Europe on the one hand, and making it difficult for local companies to access foreign capital on the other. The concern that investors will make off with European technologies is in clear contrast with the predominantly good experiences that the mechanical engineering industry has had with investors from China. Introducing investment controls will give China new arguments to justify closing its own market to European businesses. It is alarming that the Commission proposes such a far-reaching policy without first consulting the affected industries.”
The Mechanical Engineering Industry Association (VDMA) represents more than 3,200 mostly medium-sized companies in the mechanical and plant engineering sector. With more than one million employees and sales amounting to approximately 220 billion euros (2016), the sector is the largest industrial employer in Germany and one of the leading German industrial sectors.