Germany seeks to soften Europe’s 2035 ban on new combustion-engine cars

Germany has once again placed itself at the heart of the European debate on the future of the car industry and mobility across Europe. Chancellor Friedrich Merz has pledged to “do everything possible” to ease the ban on the sale of new cars with combustion engines from 2035.

His comments follow a meeting between the German government and leading figures from the country’s automotive industry. The stance directly challenges Brussels’ approach, after it reaffirmed last month that Europe’s automotive future will indeed be electric.

In 2023, the European Union (EU) approved the end of sales of new cars producing carbon dioxide (CO₂) emissions from 2035. The target is intended to speed up the shift towards electric vehicles and progressively phase out conventional internal-combustion engines. However, opposition has continued ever since, while electric-car sales remain well below the levels anticipated.

The latest objection comes from the country regarded as the “engine of the European economy”. “We should not ban, but rather allow technological development,” Merz said, arguing that Europe should not rule out synthetic fuels or next-generation hybrid solutions.

A matter of industrial survival

Merz’s position is driven by economic and social concerns. Germany’s automotive sector is the country’s largest employer and exporter, while facing three simultaneous storms: high energy costs, mounting regulatory pressure and China’s technological advance.

“It is not an ideological issue, but one of industrial survival,” a source close to the government acknowledged, reflecting the view of several business leaders. The ACEA (European Automobile Manufacturers’ Association) has also issued a warning, saying the 2035 target is “too rigid” and founded on overly optimistic projections for electric-vehicle uptake.

Not everyone agrees

Germany’s new position is not universally supported, however. Within the governing coalition itself, the Social Democrats refuse to follow this line, while other Member States - particularly France and the Nordic countries - see the hesitation as a dangerous step backwards.

Nevertheless, Berlin is not alone. Poland, Hungary and the Czech Republic had already expressed similar reservations, arguing that synthetic fuels (e-fuels) and advanced hybrids should have a legal route to coexist with electric vehicles after 2035.

In the European Parliament, where a majority is aligned with the EPP (European People’s Party) family, calls to review the rule are also growing louder. Their arguments focus on technological neutrality and global competitiveness.

The debate could be settled this year

The European Commission (EC), for its part, continues to stress the importance of regulatory stability. According to Brussels, the 2035 deadline is “an essential pillar” for providing investment certainty and accelerating progress towards climate targets.

Yet Germany’s stance reopens a wound that has never fully healed: a Europe divided between the environmental imperative of full electrification and the defence of its industrial strength, as it is now perceived.

Once again, Berlin is putting its foot down. This is because the impact could be greatest in Germany itself, triggering a ripple effect that, according to supporters of the combustion engine, will know no borders.