The European Commission was supposed to provide clarity this week on the future of the 2035 ban on new petrol and diesel cars, but that decision has been delayed. That ban was announced a year and a half ago, but car manufacturers and EU politicians want to reverse it.
Car manufacturers have long been pushing for adjustments. They point to disappointing sales of electric cars, the slow transition to new technology, and strong competition from China.
Commission President Ursula von der Leyen previously said that European car factories should not insist on electrifying their (existing) large (more expensive) car models. She believes the European car industry must compete with the Chinese by producing small, cheap electric (city) cars.
Germany is playing a visible role in this. Chancellor Merz is calling for exceptions for plug-in hybrids, full hybrids, vehicles with a ‘range extender,’ and also for cars with very efficient combustion engines. Major manufacturers support this request and say all drive systems should remain possible.
Several countries, including Italy, also want to allow other technologies such as cars running on (less polluting) biofuels after 2035. France, on the other hand, sticks to a fully electric path to avoid undermining the sector’s previous investments. This has increased division within the EU.
Besides car policy, Brussels is also postponing the Buy European plan. This package is intended to strengthen European companies but faces hesitation from several EU countries. They fear risks to trade, prices, and supply chains if European preference is introduced too quickly, to the detriment of imported Asian or American competitors.
Nine countries are calling for great caution regarding this proposal. They want a better analysis of the economic consequences first and argue that European preference should only be used as a last resort, especially in clearly defined strategic sectors.
Because of this division, this dossier is also delayed. The European Commission had intended to present the package this year, but due to differing views within the EU, the decision-making has been pushed to a later date. This leaves both industry and EU countries in uncertainty.