Germany Challenges Europe’s 2035 Combustion-Engine Car Ban

Germany has once again become central to the European debate on the future of the car industry and mobility across Europe. Chancellor Friedrich Merz has pledged to “do everything possible” to ease the ban on selling new combustion-engine cars from 2035.

His comments followed a meeting between the German government and leading figures from the country’s automotive industry. This stance directly challenges Brussels’ position, reiterated last month, that Europe’s automotive future will indeed be electric.

In 2023, the European Union (EU) approved an end to the sale of new cars that produce carbon dioxide (CO₂) emissions from 2035. The target is intended to speed up the shift to electric vehicles and progressively phase out conventional internal-combustion engines. Since then, however, opposition has not subsided, while electric-car sales remain well below anticipated levels.

The objection now comes from the country regarded as the “engine of the European economy”. “We should not ban, but instead allow technological progress,” Merz said, arguing that Europe should not shut the door on synthetic fuels or next-generation hybrid solutions.

Industrial survival at stake

Merz’s position reflects both economic and social concerns. Germany’s motor industry is the country’s largest employer and exporter, yet it is facing three simultaneous pressures: high energy costs, growing regulatory demands and China’s technological push.

“It is not an ideological issue, but one of industrial survival,” a source close to the government acknowledged, reflecting the views of several business leaders. The ACEA (European Automobile Manufacturers’ Association) has also issued a warning, saying the 2035 target is “too rigid” and relies on overly optimistic scenarios for electric-vehicle adoption.

Not everyone agrees

Germany’s new stance is far from unanimous. Within the governing coalition itself, the Social Democrats reject this approach, while other member states - particularly France and the Nordic countries - see this hesitation as a dangerous step backwards.

Nevertheless, Berlin is not alone. Poland, Hungary and the Czech Republic had already voiced similar reservations, arguing that synthetic fuels (e-fuels) and advanced hybrids should have legal scope to coexist with electric vehicles after 2035.

In the European Parliament, where the European People’s Party (EPP) family holds a majority, calls for the rule to be reviewed are also growing, focused on technological neutrality and global competitiveness.

The 2035 debate could be settled this year

For its part, the European Commission (EC) continues to stress regulatory stability. According to Brussels, the 2035 deadline is “an essential pillar” for providing investment certainty and speeding up progress towards climate targets.

Yet Germany’s position reopens a wound that never fully healed: a Europe divided between the environmental imperative of full electrification and the defence of its industrial strength as it is now understood.

Once again, Berlin is standing firm. The impact could be greatest precisely in Germany, triggering a ripple effect that, according to supporters of the combustion engine, will recognise no borders.