The European Commission’s recent adjustments to its auto-package, effectively easing the planned phase-out of internal combustion engine (ICE) vehicles from 2035, are facing significant pushback from leading figures within the center-right European People’s Party (EPP) and German Union factions. While the Commission’s revised plan allows for a continued, albeit restricted, presence of ICE vehicles by permitting the offsetting of remaining CO2 emissions through technologies like green steel and low-emission fuels, critics argue the changes are insufficient and create further competitive disadvantages.
Gitta Connemann, head of the Mittelstands- und Wirtschaftsunion (MIT), a prominent business-focused association within the EPP, declared that “Brussels urgently needs to adjust course” warning of the detrimental effects the current regulations have on the German Mittelstand-small and medium-sized enterprises that form the backbone of the German economy. CSU parliamentary group leader Alexander Hoffmann echoed this sentiment, stating he anticipates “significant changes” to the Commission’s proposal as the legislative process continues, questioning whether the proclaimed abandonment of the combustion engine ban constitutes a genuine shift or a mere “hollow phrase.
The discrepancy in regulations between general vehicle sales and company car fleets is a key point of contention. While new private car sales can now incorporate a limited number of ICE vehicles, stringent rules continue to apply to company car fleets – which dominate the German new car market – requiring 95% electric vehicles by 2035, impacting both new and existing vehicles.
Connemann was particularly scathing about the proposed rules regarding commercial vehicle fleets, rejecting suggestions of newly imposed quotas for vehicle types. She argues such measures will not accelerate the adoption of electric vehicles and instead represent a loss for the German Mittelstand, creating a “built-in disadvantage” through differing regulations across European member states.
Hoffmann stressed the need for “genuine technological openness and planning certainty beyond 2035” dismissing the adjustments as “formula compromises” that risk undermining the competitiveness of the German and European automotive industries compared to rivals in other global regions. The Union’s sustained pre-decision pressure had visibly influenced the Commission’s willingness to alter the initial, more restrictive proposals.
