FRANKFURT, June 10 (Xinhua) -- Germany's mechanical engineering industry association VDMA criticized "Horizon Europe", an ambitious 100 billion euro research and innovation framework programme proposed by European Commission to succeed "Horizon 2020", arguing that the EU had set wrong priorities in the new programme.

"Europe's leading role in many key technologies is also result of the first-class research capability in Europe. If the EU promoted industrial research less strongly, it would be a bet on the future of Europe as a technology hub." Managing Director of the VDMA Thilo Brodtmann warned recently in a statement.

According to the EU's new programme proposal, the budget for pre-competitive production research would be cut, while mechanical engineering companies would have less access to the financial support.

According to the association, it is particularly a serious problem that Europe is withdrawing its support while other regions of the world are investing heavily in industrial technology research. The Frankfurt-based association represents more than 3,200 member companies in the small and medium enterprises (SMEs)-dominated mechanical and systems engineering industry in Germany and Europe.

"This makes domestic companies particularly difficult to compete internationally, "said Brodtmann.

The VDMA called on the European Parliament and the EU members to re-lay weight on applied research in key industrial technologies in the further legislative process, above all, to ensure access for SMEs to corresponding promotion projects.

Horizon Europe is expected to generate new and more knowledge and technologies, promoting scientific excellence, and to have positive effects on growth, trade and investment and significant social and environmental impact, according to the EU's proposal.

The EU expected that each euro invested by the programme could potentially generate a return of up to 11 euro of Gross Domestic Product (GDP) over 25 years starting from 2021. (1 euro = 1.18 U.S. dollars)