German Chancellor Olaf Scholz is advocating for increased European support for electric vehicles, emphasizing the need for tax advantages and purchase incentives. He believes that such measures will facilitate a more interconnected European automotive market. Scholz is concerned about the potential punitive EU climate penalties that could impact car manufacturers, particularly in light of the EU's ambitious goal to phase out petrol and diesel vehicles by 2035. The proposed emissions limits could lead to substantial fines for companies that fail to meet the stringent standards.
The automotive industry faces significant pressure as it competes with subsidized electric vehicles from China. Scholz's call for a balanced approach reflects the divergent views among EU member states on how to achieve climate goals without jeopardizing the industry’s viability. He stresses the importance of supporting manufacturers to avoid job losses and plant closures, which could arise from harsh penalties.
The Bundesrat has echoed Scholz’s sentiments, urging modifications to the CO2 fleet limit regulations to protect jobs and market share while maintaining the integrity of EU climate objectives. As discussions evolve, the European Commission plans to engage in dialogue with the automotive sector to find a compromise that addresses both environmental aims and economic realities. Scholz’s proposals highlight a pivotal moment in the EU's transition to electric vehicles, underscoring the necessity of strategic support for manufacturers.
