Combustion engine enthusiasts and German auto executives may have reason to cheer as Chancellor Friedrich Merz takes a defiant stand against a cornerstone of the European Union’s climate policy. In a high-stakes political and industrial maneuver, Germany is pushing hard to relax the EU’s 2035 ban on new internal combustion engine (ICE) vehicles—a rule that has sent shockwaves through Europe’s automotive heartland.
Table of Contents
- Germany’s Unprecedented Pushback
- Why the 2035 Deadline Matters So Much
- What’s at Stake for the Auto Industry?
- Can the EU Actually Reverse Course?
- The Road Ahead: Electrification vs. Flexibility
- Sources
Germany’s Unprecedented Pushback
In a rare show of unity between government and industry, Chancellor Friedrich Merz has vowed to “do everything in his power” to fight the EU’s hard cutoff on combustion-engine car sales after 2035 . At a recent crisis meeting with top executives from Volkswagen, BMW, and Mercedes-Benz, Merz signaled that Germany would formally urge Brussels to soften its stance—potentially by allowing synthetic fuels (e-fuels) to keep ICE vehicles compliant beyond the deadline .
This isn’t just political posturing. With over 800,000 Germans employed directly in auto manufacturing, the stakes couldn’t be higher. The German auto sector, long a symbol of engineering excellence, fears massive job losses and plant closures if forced into an abrupt, inflexible transition .
Why the 2035 Deadline Matters So Much
The EU’s 2035 regulation—part of the “Fit for 55” climate package—mandates that all new cars sold in the bloc must be zero-emission. While often described as a “ban” on combustion engines, the rule technically allows ICE vehicles if they run on carbon-neutral fuels like e-fuels. However, the current legal framework doesn’t recognize e-fuels as compliant, effectively sidelining them .
Germany, along with Italy, has been lobbying to change this interpretation. Their argument? A blanket ban ignores technological neutrality and punishes manufacturers investing in alternative, low-carbon liquid fuels .
What’s at Stake for the Auto Industry?
| Concern | Impact |
|---|---|
| Job Losses | Potential loss of hundreds of thousands of manufacturing jobs across Germany |
| Supply Chain Disruption | Thousands of SMEs supplying ICE components face obsolescence |
| Investment Uncertainty | Billions in R&D for e-fuels and hybrids may go to waste if rules don’t adapt |
| Global Competitiveness | EU automakers risk falling behind U.S. and Chinese rivals with more flexible policies |
Can the EU Actually Reverse Course?
Legally, the 2035 rule is already EU law—meaning Germany can’t unilaterally overturn it . However, the European Commission has shown willingness to consider exemptions. In 2023, it granted a temporary carve-out for e-fuels after intense lobbying from Porsche and Ferrari. Now, Germany wants that exception expanded to all manufacturers.
“The ban cannot be reversed single-handedly by Germany,” experts caution, “but a coalition of member states could force a revision” . With Italy already on board and other nations watching closely, Berlin’s campaign might gain traction—if it can prove e-fuels are scalable and truly carbon-neutral.
The Road Ahead: Electrification vs. Flexibility
Environmental groups warn that relaxing the rules could delay climate progress. Yet German leaders argue that a rigid, one-size-fits-all approach ignores regional realities and technological diversity. “It’s not about stopping electrification,” Merz clarified, “but ensuring a just and economically viable transition” .
As the EU debates its next move, one thing is clear: the battle over the combustion engine is about more than tailpipes—it’s about jobs, sovereignty, and the future of European industry.
Sources
- New York Times: German Leaders and Auto Chiefs Team Up in Push to Relax Emissions Rules
- Reuters: German chancellor supports industry’s push for looser EU emissions rules
- Deutsche Welle: At German auto crisis meet, Merz vows to fight EU gas car ban
- Politico: Germany and Italy Lead Revolt on EU Engine Rules
