Germany Pushes for Technology-Neutral CO₂ Rules Amid Auto Industry Crisis

German Chancellor Merz has urged the EU to adopt flexible CO₂ regulations that could extend the life of combustion engines beyond the 2035 ban. The proposal emphasizes a fleet-wide emissions approach rather than focusing solely on new vehicle registrations. "Our goal should be a technology-neutral, flexible, and realistic CO₂ regulation that meets the EU’s climate targets without stifling innovation," Merz stated.

Germany continues to balance regulatory flexibility with domestic EV incentives, including subsidies of up to €5,000 for electric or hybrid vehicles with German-made components. The automotive sector, a cornerstone of the economy, has lost over 51,000 jobs this year alone. Industry leaders like Mercedes-Benz CEO Ola Källenius warn that rigid policies risk collapsing Europe's auto market.