Germany Puts Brakes on EU's 2035 Internal Combustion Engine Vehicle Ban

Parties Reach Consensus to Call for Easing of Policy

The European Union’s plan to ban the sale of internal combustion engine vehicles has encountered a setback. Germany, the largest automobile producer in Europe, has put the brakes on the EU’s plan to prohibit the sale of internal combustion engine vehicles starting in 2035.

Volkswagen Car Tower. Photo by Reuters Yonhap News

According to dpa and other sources, the Christian Democratic Union (CDU) and Christian Social Union (CSU) alliance, along with the Social Democratic Party (SPD), announced at a press conference on the 28th (local time) that they have decided to call on the EU to ease its policy of phasing out internal combustion engine vehicles.

The two parties stated that this decision was made at a coalition government committee meeting the previous day, arguing that even after 2035, 'high-efficiency' internal combustion engine vehicles that emit fewer greenhouse gases, such as hybrids, should be allowed.

This is the first time that the CDU/CSU alliance, which pledged to withdraw the internal combustion engine ban policy during the general election in February, has established a unified stance at the coalition government level.

Chancellor Friedrich Merz stated, "The competitiveness of the European automobile industry and climate protection must be balanced," and announced plans to send a letter to European Commission President Ursula von der Leyen later in the day, outlining the German government’s position.

The 2035 ban on the sale of internal combustion engine vehicles is a core green policy promoted by the European Commission since 2021. The German automobile industry has persistently called for the relaxation of the policy, citing the enormous costs and time required for the transition to electric vehicles. Brands under German companies, including the Volkswagen Group, account for more than 80% of vehicle production in Europe.

As a result, the likelihood of the EU revising its internal combustion engine phase-out plan has increased. Stefan Sejourne, the European Commission’s Vice President for Prosperity and Industrial Strategy, also suggested a possible policy change on the 7th of this month, stating that "flexibility should be shown regarding the 2035 internal combustion engine phase-out target."