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The European Commission has caved in to pressure from the car industry

On December 16, the European Commission will announce new strategic decisions on the development of the automotive industry, which include lifting the ban on internal combustion engines in 2035, creating a new class of low-cost electric vehicles and exempting a number of commercial vehicle regulations and measures, Logos Press reported.
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The European Commission has caved in to pressure from the car industry

These changes were the result of numerous meetings and negotiations between the European Commission and representatives of automakers and member states. They were increasingly insistent on rejecting the EU’s overly stringent climate requirements, believing that otherwise the European car industry would finally lose competition to Chinese cars. The leaders of Germany, Italy and Poland, as well as carmakers Volkswagen, Stellantis, Renault, Mercedes-Benz and BMW were the most active in urging the European Commission to soften its position on internal combustion engines, hightech.plus notes.

Among the proposed mitigation measures, the most important decision will be the lifting of the ban on the sale of new cars with CO2 emissions, which was supposed to come into force in 2035. Manfred Weber, president of the European People’s Party, the largest in the European Parliament, said that a commitment to reduce emissions by 90% by 2035 would be introduced instead of the previously planned 100%. Such a relaxation would allow manufacturers to sell cars with internal combustion engines beyond 2035, provided that the average fleet emission level is 10% of the level that existed when the Green Deal was signed.

In addition, the EU plans to incentivize the production and purchase of small electric vehicles to compete with Chinese manufacturers. European initiatives can draw on the experience of Japan and Norway as examples.

In Japan, owners of kei-car-class electric cars (small cars with angular design) receive incentives, including reduced insurance premiums and car tax. In Norway, where electric cars have become the most widespread in Europe, the adoption of zero-emission vehicles is incentivized through VAT and purchase tax exemptions, as well as a 50% reduction in road tolls.

Another auto industry support measure agreed to by the European Commission aims to further develop a pan-European subsidy system that allows member states to support local production of electric vehicles through Rabla-type programs. This program could be supplemented by national programs if necessary. It is likely that conditions for production within the EU will be announced.

Environmentalists oppose these mitigating measures and criticize the European Commission for “yet another” departure from the goals of the climate agenda. They believe that the agreed measures will slow down the transition to electric cars and will not incentivize manufacturers to adopt new technologies and care about reducing emissions.

Despite these criticisms, the extension of the use of cars with internal combustion engines will be accepted, experts say. The interests of the European car industry and the EU economy as a whole so far outweigh the narratives of the climate agenda.


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