German Government Debates Flexible Approach to Combustion Engine Phase-Out

The German federal government is currently engaged in intense discussions regarding the planned phase-out of new combustion engine vehicles by 2035. Central to the debate is the future of the automotive industry, a vital sector for Germany's economy, and the need to balance environmental objectives with economic stability.

During a recent government meeting, the Chancellor expressed strong opposition to implementing a complete ban on the registration of new cars with petrol or diesel engines from 2035. He emphasized that a rigid transition is technically unfeasible and could have negative implications for both the automotive industry and the broader economy. The Chancellor reiterated his intention to prevent a strict cut-off, suggesting that a more gradual approach is necessary to accommodate technological and industrial realities.

The Vice Chancellor supported the need for rapid decision-making but highlighted that increased flexibility is crucial. He underscored the importance of pragmatic solutions that protect existing jobs and ensure the continued strength of the German automotive sector. Both leaders agreed on the significance of expanding electric mobility as a cornerstone of the country's transition towards more sustainable transport.

To address ongoing challenges, the Chancellor convened a summit with representatives from the automotive industry, trade unions, and several federal states. The aim was to discuss strategies for improving conditions in the struggling automotive sector, which has faced mounting pressures from global competition and the shift towards greener technologies. Industry stakeholders have repeatedly called for exceptions to the proposed ban on combustion engine vehicles, particularly to safeguard jobs and maintain Germany's competitive edge.

At the European level, a regulation agreed upon in 2022 stipulates that from 2035 onwards, no new cars powered solely by petrol or diesel engines may be registered within the EU. This policy is intended to significantly reduce carbon dioxide emissions and support broader climate protection goals. However, the regulation has sparked debate within Germany, with disagreements between the major political parties regarding the country's official stance.

The Chancellor has advocated for overturning the EU regulation, while the Social Democratic Party remains supportive of the planned phase-out. It is important to note that any revision of the EU policy requires a formal proposal from the European Commission, which is expected by the end of the year. Such a change would also need approval from a majority of EU member states and the European Parliament.

The president of the German Association of the Automotive Industry emphasized the need for swift and unified action from Germany in Brussels to ensure the country's interests are represented effectively. Divisions persist within the European Parliament, as some parties campaign for the abolition of the combustion engine ban, while others, particularly Social Democrats and Greens, are likely to oppose any significant weakening of climate regulations.

As the EU prepares for a review of the combustion engine phase-out policy, the outcome of Germany's internal deliberations will play a key role in shaping the future of both the country's automotive industry and its contribution to climate protection efforts.