Germany and Friedrich Merz challenge the EU 2035 combustion-engine car ban

Germany has once again put itself at the heart of the European argument about the future of the car industry and mobility across Europe. Chancellor Friedrich Merz has pledged to “do everything possible” to soften the ban on selling new cars with internal combustion engines from 2035.

His remarks followed a meeting between the German government and senior figures from the country’s automotive sector. The stance directly challenges the line set by Brussels, which reiterated last month that the future of the car in Europe will indeed be electric.

It is worth recalling that, in 2023, the European Union (EU) approved an end to the sale of new cars emitting carbon dioxide (CO₂) from 2035. The target is intended to speed up the shift to electric vehicles and progressively phase out conventional combustion engines. Since then, however, opposition has not died away, and electric-car sales remain well below the levels that were anticipated.

Now the pushback is coming from the country often described as the “engine of the European economy”. “We should not ban, but rather allow technological progress,” Merz said, arguing that Europe should not shut the door on synthetic fuels (e-fuels) or on new-generation hybrid solutions.

A question of industrial survival

Merz’s position reflects economic and social anxieties. Germany’s automotive industry is the country’s biggest employer and exporter, and it is being hit by three storms at once: high energy costs, mounting regulatory pressure and China’s technological offensive.

“It is not an ideological issue, but one of industrial survival,” a source close to the government acknowledged, echoing the view held by several business leaders. ACEA (the European Automobile Manufacturers’ Association) has also sounded the alarm, warning that the 2035 target is “too rigid” and based on scenarios for electric uptake that are excessively optimistic.

Not everyone agrees

Germany’s new stance is not universally shared. Within the governing coalition itself, the Social Democrats refuse to follow that line, and other Member States - particularly France and the Nordic countries - see this hesitation as a dangerous step backwards.

Even so, Berlin is not isolated. Countries such as Poland, Hungary and the Czech Republic had already voiced similar reservations, insisting that synthetic fuels (e-fuels) and advanced hybrids should have legal room to coexist with electric vehicles after 2035.

In the European Parliament, where a majority sits with the EPP (European People’s Party) family, the calls for the rule to be revisited are also growing louder, with arguments centred on technological neutrality and global competitiveness.

The debate could be settled later this year

The European Commission (EC), for its part, continues to argue for regulatory stability. According to Brussels, the 2035 horizon is “an essential pillar” for giving investment greater predictability and speeding up the delivery of climate targets.

But Germany’s stance reopens a wound that never fully healed: a Europe split between the environmental imperative and full electrification, and the defence of its industrial strength as it is now perceived.

Once again, Berlin is digging in its heels. And it is precisely in Germany that the shock could be most severe, in a ripple effect that, according to those who defend the internal combustion engine, will not respect borders.

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