(Gemini Audio)
(de-news.net) – Germany’s federal government is engaged in an intensive and multifaceted debate regarding the European Union’s proposed ban on combustion engines, scheduled to take effect in 2035. This discussion is unfolding in the lead-up to a high-level automobile summit, where policymakers, industry leaders, and regional representatives are expected to convene. While coalition partners explore alternative mechanisms to support both the automotive and steel sectors, Chancellor Friedrich Merz (CDU) has openly rejected the EU’s plan, arguing that such a measure could inflict significant harm on Germany’s domestic automotive industry. The broader discourse reflects a fundamental tension between the imperatives of climate policy and the demands of industrial competitiveness, with stakeholders striving to identify a balanced approach that safeguards environmental objectives without undermining economic resilience or technological progress.
According to press reports, Chancellor Merz has expressed the view that the EU’s proposed phase-out of combustion engine vehicles is fundamentally flawed, particularly when assessed against the backdrop of Germany’s industrial landscape. He is said to have emphasized that the federal government should refrain from implementing the ban in its current configuration and instead adopt a more technologically inclusive stance in forthcoming policy discussions. Merz reportedly noted that the European Commission had accelerated its decision-making timeline, aiming to finalize the matter within the current calendar year. He advised that Germany should avoid aligning itself with member states that endorse what he considers to be a misguided regulatory strategy.
Merz has also clarified that his position should not be interpreted as a retreat from Germany’s environmental commitments. Rather, he argued that combustion engines should remain permissible, especially in sectors such as freight logistics, where they continue to play a vital role. He warned that prohibiting a technology outright would likely result in its abandonment by industry, a development he characterized as a serious strategic error. Furthermore, Merz pointed out that research and development efforts related to diesel engines are ongoing across the globe and asserted that German industry must continue to participate actively in these technological advancements.
The Chancellor acknowledged that the issue had not yet been comprehensively debated within the governing coalition. He expressed hope that the upcoming summit would facilitate a more substantive exchange of views and potentially yield a consensus. However, it was reported that Environment Minister Carsten Schneider (SPD) remained unconvinced by Merz’s arguments. Merz reiterated his overarching policy objective: to foster technological innovation rather than impose restrictive measures that could stifle industrial development.
In parallel, the European Union is currently deliberating a “Buy European” initiative aimed at strengthening the competitive position of European enterprises in global markets. Within this framework, the German coalition is reportedly considering extending the strategy to the automotive sector. This would allow manufacturers to factor the use of green steel—predominantly sourced from within Europe—into their climate compliance calculations. Such a policy could simultaneously reduce regulatory burdens on automakers and stimulate demand for environmentally sustainable steel production.
Additional policy proposals are also under review. According to several government sources, the Federal Environment Ministry has floated the idea of increasing taxes on vehicles powered by internal combustion engines as a means of partially offsetting the fiscal incentives currently granted to electric vehicles. However, this proposal has reportedly met with strong resistance from the CDU/CSU and representatives from various federal states. Critics of the measure argue that it would be difficult to justify such a tax hike in light of the ongoing decline in automobile sales across Germany.
The upcoming auto summit, convened by Chancellor Merz, is expected to bring together federal ministers, senior industry executives, trade union leaders, and a number of state premiers. The central issue on the agenda will be whether the proposed 2035 phase-out of combustion engines should proceed as planned. Sources familiar with the negotiations anticipate that a compromise may be reached, with the target date likely to remain intact but the implementation framework becoming more adaptable to industry needs.
Saarland’s Minister President Anke Rehlinger has reportedly emphasized the importance of maintaining climate targets while enabling industrial transformation. She advocated for the continued use of hybrid technologies beyond 2035 and suggested that Germany should actively promote this position within EU policymaking circles. Rehlinger also underscored the necessity for companies to provide clear assurances regarding job creation and the preservation of domestic manufacturing infrastructure.
In preparation for the summit, the federal government is also examining alternative strategies to revitalize the struggling automotive sector. Reports indicate that the CDU/CSU and SPD are considering a proposal to link support for car manufacturers with assistance for the domestic steel industry. Under this plan, automakers that utilize green steel—primarily sourced from European producers—would be eligible for regulatory concessions related to CO₂ emissions targets.
