ACHEMA 2012/Plant Engineering Development Needs Help – VDMA Calls Upon Policy Makers
The German industry association VDMA calls upon the policy makers to develop a framework for future corporate growth efforts. According to speakers the European industry needs a reliable export crediting and fiscal policy to be able to stay abreast of its competition.
Frankfurt/Germany – “Certain countries try to undermine international treaties by enforcing certain additional taxes on foreign companies,” explained Helmuth Knaute, member of the board of Thyssen Krupp Uhde and speaker of the VDMA's large plant engineering workgroup at the presentation of the group's annual report in Frankfurt. He called upon the policy makers in ministries and government to enforce a stringent compliance of the double tax convention.
Although existing tradements and treaties try to mitigate the effects of double taxation for companies that generate incomes in more than one country, quite often foreign authorities try to impose additional taxes on investment projects in their countries, Knauthe stated. He stressed that the industry needs reliable and equal conditions and, that can only be achieved by following the excisting agreements.
Reliable Credit Framework Needed
Especially Asian engineering firms would profit from governmental support with cheap, subsidised credits for their customers, participants added. Therefor, a simple and reliable trade insurance policy would be needed to meet the requirements of the plant builders. The VDMA suggests a pragmatic handling of cross border covers by mandatary and policicy, Knauthe explained.
OECD countries should try to encourage the usage of proven OECD handling procedures to foreign markets, especially in developing and emerging countries to find a common solution, he added.
Temporary Employment Reagarded as "Vital"
The association also encouraged authorities to continue the temporary employment policy, which speakers described as“providing a vital level of flexibility”. The VDAM also militatd against any regulation that goes beyond the introduction of a minimum wage in Germany earlier this year.