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Germany’s 2035 Car Ban Fight Intensifies as Merz Presses Repeal and Auto Summit Nears

Policymakers move fresh electrification incentives, including a proposed EV tax break extension and European Parliament backing for longer e‑truck toll relief.

Overview

  • Chancellor Friedrich Merz reiterated that Germany should not uphold the EU’s 2035 rule on new combustion‑engine car sales, calling it a “false” ban, and has convened an auto summit for October 9 with ministers, states, industry and unions.
  • Environment Minister Carsten Schneider said EU law from 2035 requires new cars to emit no CO2 at the tailpipe or manufacturers face fines, rejecting a rollback and arguing companies need planning certainty.
  • Labour Minister and SPD co‑leader Bärbel Bas said any public support must come with site and job guarantees after meeting automotive works councils, adding that firms remain committed to the shift to electric vehicles.
  • Finance Minister Lars Klingbeil proposed extending the ten‑year Kfz‑tax exemption for new pure electric cars so it can apply through December 31, 2035, with the measure expected to be discussed at the summit.
  • The European Parliament endorsed prolonging e‑truck toll exemptions to June 2031, with final approval still required from EU member states in the Council before national implementation.