Germany’s coalition government has agreed on a unified national position for the European Union’s review of its 2035 zero-emission requirement for new cars, backing a broader range of technologies that would include highly efficient combustion engine models alongside electric vehicles, party sources said after a coalition committee meeting.
The agreement paves the way for Germany to formally communicate its stance to the European Commission ahead of an expected regulatory proposal in December. According to the position conveyed to German news agency DPA, the government wants “highly efficient combustion engine models” to remain eligible for registration beyond 2035 as part of a wider technological approach to decarbonising road transport. The EU’s current legislation requires all new cars registered from 2035 to have zero tailpipe CO₂ emissions, effectively limiting sales to battery-electric and hydrogen fuel-cell vehicles.
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German Chancellor Friedrich Merz is expected to outline the government’s position in a letter to European Commission President Ursula von der Leyen. The coalition’s internal agreement follows weeks of negotiations, during which differing views on the future of combustion technology had delayed a common line. The European Commission announced earlier this year that it would reassess the 2035 regulation following requests from several member states and parts of the auto industry, with a revised proposal due on Dec. 10.
Calls for flexibility have also come from Germany’s federal states. A policy paper adopted in October urged the federal government to safeguard the “future of the combustion engine” through regulatory measures and warned against a strict ban from 2035 onwards. The document pointed to the potential role of “alternative climate-friendly drive concepts, climate-friendly fuels and complementary transitional technologies such as highly efficient combustion engines, plug-in hybrids and electric vehicles with a range extender.”
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Separately, the coalition has also agreed on the framework for a new electric vehicle subsidy programme aimed at lower- and middle-income households. According to a resolution paper following the coalition committee meeting, eligibility would be based on a taxable annual household income of up to €80,000, with the threshold rising by €5,000 per child. The planned subsidy consists of a €3,000 base amount, which “increases by €500 per child to a maximum of €1,000,” with additional support foreseen for households with particularly low net incomes.
The government aims to finalise the design of the subsidy scheme by the end of the year, with a launch planned “as soon as possible in 2026,” subject to approval under EU state-aid rules. The European Commission’s December proposal on the 2035 rule is expected to shape the scope and direction of further negotiations among member states.
Source: Handelsblatt
