Germany Challenges Europe’s 2035 Combustion-Engine Ban

Germany has once again moved to the heart of the European debate over the future of the automotive industry and mobility across Europe. Chancellor Friedrich Merz has pledged to “do everything possible” to ease the ban on selling new cars with combustion engines from 2035.

His comments followed a meeting between the German government and senior figures from Germany’s car industry. This stance directly challenges the approach set by Brussels, which reiterated last month that the future of the car in Europe will indeed be electric.

In 2023, the European Union (EU) approved an end to the sale of new cars producing carbon dioxide (CO₂) emissions from 2035. The target is intended to speed up the shift towards electric vehicles and progressively phase out conventional internal-combustion engines. However, opposition has persisted ever since, while electric-car sales remain well below the levels anticipated.

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

A matter of industrial survival

Merz’s position reflects economic and social concerns. Germany’s automotive industry is the country’s largest employer and exporter, and it is facing three pressures at once: high energy costs, growing regulatory pressure and China’s technological offensive.

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

Not everyone agrees

Germany’s new position is not unanimous, however. Within the governing coalition itself, the Social Democrats refuse to follow 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. Countries including Poland, Hungary and the Czech Republic had already expressed 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 majority is aligned with the EPP (European People’s Party) family, calls are also growing for the rule to be reviewed, with arguments focused on technological neutrality and global competitiveness.

The 2035 combustion-engine debate could end 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 accelerating progress towards climate targets.

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

Once again, Berlin is standing its ground. The impact could be greatest precisely in Germany, triggering a knock-on effect that, according to supporters of the combustion engine, will know no borders.