Chancellor Merz in Talks with German Automakers Amid EU Emission Plans

Chancellor Friedrich Merz is set to confer with leading German automakers on Thursday without a collective stance from the government regarding the EU's ambitious plan to halt the sale of carbon dioxide-emitting cars by 2035. In a shift from his previous position, Merz reflects internal discord within his SPD coalition regarding carbon emissions.

Merz indicates the government's approach involves consulting the automotive sector and awaiting the European Commission's forthcoming review. This tactic aims to ensure informed decision-making. During a press conference, Merz emphasized ongoing discussions, stating, 'We want to engage in dialogue for an informed assessment,' alongside senior cabinet members after intense deliberations on pensions and job benefits.

EU's directive for a complete reduction in CO2 emissions in automotive by 2035 signifies the demise of the internal combustion engine for new vehicles. With EU automakers facing challenges due to fierce competition from China and U.S. tariffs, they argue against the feasibility of the 2035 target owing to extrinsic factors like inadequate charging infrastructure. Additionally, the German government has allocated an extra 3 billion euros to promote electric car sales through subsidies targeting middle and lower-income groups.

(With inputs from agencies.)