EU Faces Challenges in Phasing Out Internal Combustion Engine Vehicles by 2035... German Finance Minister Calls It a "Wrong Decision"

Green Party-affiliated Environment Minister Expresses Conflicting Positions on "Support for Expulsion"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] The European Union (EU)'s plan to phase out internal combustion engine vehicles by 2035 has encountered obstacles.

The 2035 internal combustion engine vehicle phase-out was proposed as part of the eco-friendly policy "Fit For 55" unveiled by the EU Commission last July. On the 8th, the European Parliament's Environment Committee passed the Commission's proposal to reduce carbon dioxide emissions from new internal combustion engine vehicles by 100% by 2035. This effectively bans the sale of internal combustion engine vehicles by 2035.

For the bill to be finalized into law, approval from the governments of each EU member state is required, but opposition has emerged starting from Germany.

According to major foreign media on the 21st, Christian Lindner, Germany's Finance Minister, said at a conference held in Berlin that day, "Phasing out internal combustion engine vehicles entirely in Europe is a wrong decision," and added, "Germany will not agree to a ban on internal combustion engines." Minister Lindner pointed out that if Europe completely phases out internal combustion engine vehicles, the gap between the European and other global automobile markets will narrow.

Finance Minister Lindner is the leader of the pro-business Free Democratic Party, which forms the German coalition government. After the European Parliament's Environment Committee approved the phase-out bill, the German automotive industry warned that tens of thousands of jobs would be lost during the transition from internal combustion engine vehicles to electric vehicles.

However, the Green Party, another party in the coalition that emphasizes environmental issues, supports the 2035 phase-out, making internal disagreements within the coalition inevitable. Steffi Lemke, Germany's Environment Minister from the Green Party, stated in an interview with DPA news agency that the German government "fully supports the proposals of the EU Commission and the European Parliament," expressing a different view from Minister Lindner.

Within the European automotive industry, opinions on the phase-out of internal combustion engine vehicles are also divided, as seen in the case of the German coalition government. Stellantis recently announced its withdrawal from the European Automobile Manufacturers Association (ACEA), citing differences in stance with other automakers within ACEA regarding the European Parliament's phase-out decision. Carlos Tavares, CEO of Stellantis, has consistently expressed dissatisfaction with the EU's rush to transition to the electric vehicle market. On the other hand, companies like Volkswagen and Mercedes have stated that they respect the European Parliament's decision.

Italy is reportedly seeking exceptions for luxury cars such as Ferrari regarding the 2035 internal combustion engine vehicle phase-out.