German Chancellor Friedrich Merz praised the European Union’s newly proposed automotive measures, aimed at supporting the struggling European car industry. The reforms modify the previously planned 2035 ban on new petrol and diesel vehicles, setting a 90% CO₂ reduction target instead of mandating a complete zero-emission threshold.
Merz described the changes as a step toward greater flexibility and openness to multiple technologies, reflecting the need to balance climate objectives with economic realities and industry competitiveness.
European Automakers Offer Conditional Support
Major European car manufacturers expressed cautious approval of the EU’s revised measures. Volkswagen called the proposals “pragmatic and economically sound,” while BMW highlighted the continued recognition of internal combustion engines as a positive for the sector.
The companies see the reforms as an opportunity to transition toward electric vehicles (EVs) while maintaining flexibility in technology adoption during the ongoing shift in the European auto market.
Industry Lobby Criticizes Measures as ‘Disastrous’
Despite political support, the German auto industry lobby (VDA) warned that the EU measures could be disastrous in practice. VDA President Hildegard Mueller highlighted challenges including compliance costs, use of green steel, and renewable fuel requirements that could threaten the competitiveness of Europe’s automotive sector amid increasing international competition.
The industry argues that while emission reduction targets are necessary, overly complex or costly regulations may hinder production efficiency and slow market growth.
Environmental Concerns and Policy Debate
Environmental groups and some EU member states have criticized the move as weakening climate action. By allowing a 10% offset through sustainable fuels and low-carbon EU steel, critics argue the policy may delay full EV adoption and undermine long-term emission reduction goals.
The EU measures still require approval by the European Parliament and member states, keeping the debate alive among policymakers, industry stakeholders, and environmental advocates.
Implications for the European Automotive Sector
The mixed reactions underline the tension between achieving climate goals and maintaining industrial competitiveness. While political leaders emphasize flexibility and economic prudence, automakers and lobbyists warn of potential costs and operational challenges.
As Europe navigates the transition to electric mobility, the outcome of these reforms will shape the future of EV adoption, manufacturing investments, and global competitiveness for the continent’s automotive industry.
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