A joint lobby by Germany and Italy has revived the debate on the EU ban. In a joint memo to the European Commission, both countries argue that after 2035 cars running on clean, environmentally friendly fuels should be allowed. This would mean that there would be a ban on new diesel and petrol cars. This move marks an open collaboration between Berlin and Rome, who until now each followed their own course.
The European Commission has announced it wants to review the 2035 ban already this year, one year earlier than planned. This is to determine whether the plan remains feasible as demand for electric cars stagnates and European car manufacturers risk losing the battle to the import of cheap Asian electric cars. This puts the future of the petrol car ban, introduced in 2022 (by the previous VDL-1 Commission) as an important part of the Green Deal, back into question.
Commission President Ursula von der Leyen recently emphasized that “the future is electric,” but at the same time left room for practical adjustments. She advocates for small, affordable electric cars produced in Europe. The Commission formally sticks to the ban, but the tone has noticeably become more pragmatic.
European car manufacturers are also increasing the pressure. The industry association wants to relax the rules, allowing for hybrid cars running on new, environmentally friendly synthetic fuels. In that case, current combustion engines can largely remain the same.
According to German, French, and Italian car manufacturers, the current criteria (“electric only”) threaten their survival. This message is gaining more support in the European Parliament, where the EPP positions itself as an advocate for “realistic climate policy.”
The Christian Democrats in the European Parliament, the largest group, also want to relax the 2035 ban. Led by Manfred Weber, the party is pushing to eliminate fines for manufacturers of cars that still pollute too much this year. According to Weber, “phasing out the combustion engine is a mistake.”
The economic context in Germany is bleak. The car industry, still the country’s most important sector, suffers from declining profits, competition from China, and high US import tariffs. Tens of thousands of jobs have disappeared at companies such as VW, Mercedes, BMW, and Bosch. Another tens of thousands are at risk. Concerns about employment strengthen political pressure on Berlin.
Federal Chancellor Friedrich Merz is opting for a pragmatic course. His government extended the tax exemption for electric cars and is working on new incentives for middle and lower incomes. At the same time, Berlin is pressing Brussels for more flexibility in EU rules to give the industry breathing room.
But while Commission President Von der Leyen urges the industry to start making cheap, small electric city cars, Merz wants the larger luxury car classes (BMW, Porsche, Volkswagen) to have the opportunity and time to switch to hybrids, including combustion engines.
Within the German coalition this approach causes clashes. CDU and CSU ministers advocate postponing or adjusting the ban, while SPD officials stick to existing agreements. The internal division makes a unified government stance difficult, but calls for change are growing louder.
The economic figures underline the urgency. According to several sources, more than 50,000 jobs in the German car industry disappeared in one year, while another 90,000 jobs are at risk. Manufacturers are struggling with rising costs, declining demand, and international competition. For many, the 2035 rule symbolizes the broader dilemma between climate ambition and industrial survival.