A contentious debate over the future of mobility in Europe has been reignited as Germany’s opposition leader, Friedrich Merz, publicly calls for the complete reversal of the European Union’s landmark 2035 ban on new combustion engine vehicles. The move challenges a cornerstone of the EU’s climate policy and exposes deep divisions within Germany’s ruling coalition and across the European automotive landscape. Merz, the head of the Christian Democratic Union (CDU), argues that a technology-agnostic approach is essential for the nation’s economic health and innovation, placing him in direct opposition to the legally binding phase-out.
The core of the issue is the EU regulation, finalized in 2023, which mandates a 100% reduction in CO2 emissions from new cars and vans sold from 2035 onwards. This effectively makes it impossible to sell new vehicles powered solely by gasoline or diesel. The policy is a critical component of the EU’s “Fit for 55” package, aimed at achieving climate neutrality by 2050, given that road transport accounts for about a fifth of the bloc’s total carbon emissions. Merz’s push to scrap the ban is not just a political maneuver ahead of Germany’s 2025 federal elections, where his party currently leads in polls; it reflects intense pressure from Germany’s powerful automotive sector, which is grappling with a costly transition, slowing electric vehicle demand, and fierce international competition.
The Foundation of the 2035 Mandate
The European Union’s decision to phase out new internal combustion engine (ICE) vehicles was the result of a lengthy legislative process. The regulation was formally agreed upon by the European Parliament and EU member states in late 2022 and adopted into law in March 2023. The primary objective is to steer the continent’s largest source of CO2 emissions toward a carbon-neutral future. With the average lifespan of a car being around 15 years, a 2035 sales ban on new ICE vehicles is seen as a necessary deadline to ensure the vast majority of cars on the road are zero-emission by the 2050 climate neutrality target date.
The legislation sets incremental targets, including a 55% reduction in CO2 emissions for new cars by 2030 compared to 2021 levels. It does not affect existing cars; citizens can continue to drive, sell, and buy used gasoline and diesel vehicles after 2035. However, proponents anticipate that the total cost of owning such vehicles will likely rise due to fuel prices and potential restrictions in urban low-emission zones. The policy was designed to provide a clear and stable long-term signal to automakers, suppliers, and investors, compelling a decisive shift toward battery-electric vehicles (BEVs) and hydrogen fuel cell technology.
Germany’s Last-Minute Intervention
The E-Fuel Compromise
The path to the 2035 ban was not smooth, and Germany itself was responsible for a significant, last-minute alteration. Just before the final vote in 2023, the German delegation, influenced by the pro-business Free Democratic Party (FDP), blocked the regulation’s final approval, demanding a specific exemption for cars running exclusively on synthetic fuels, or e-fuels. This maneuver threw the process into temporary disarray until a compromise was reached. The EU Commission agreed to create a new, separate vehicle category for cars that can only run on carbon-neutral e-fuels, ensuring they could still be sold after the 2035 deadline.
E-fuels are produced synthetically by combining captured CO2 with hydrogen generated from renewable electricity. While they emit CO2 when combusted, they are considered carbon-neutral on a life-cycle basis because the carbon released is equivalent to the amount initially captured during production. This compromise was hailed as a victory for technological openness and a lifeline for the traditional combustion engine. However, critics argue that e-fuels are inefficient, expensive to produce, and still release tailpipe pollutants that affect air quality. They see the exemption as a niche solution, primarily benefiting luxury and performance carmakers like Porsche, rather than a viable path for mass-market transportation.
Economic Anxieties and Industrial Pressure
Friedrich Merz’s call to reverse the ban aligns closely with the concerns voiced by Germany’s automotive industry, a sector that accounts for about 5% of the country’s GDP and employs hundreds of thousands of people. Industry leaders, including the German Association of the Automotive Industry (VDA), have warned that a rigid, all-electric mandate threatens jobs, erodes industrial competitiveness, and ignores the economic realities facing both manufacturers and consumers. They argue for a recalibration of the 2035 targets, with some proposing a 90% emissions reduction instead of 100%, which would permit the continued, albeit limited, sale of efficient ICE and hybrid vehicles.
German automakers find themselves in a challenging position, facing slowing demand for EVs at home after the removal of government subsidies, while simultaneously confronting intense competition from Chinese manufacturers like BYD and US-based Tesla. Major suppliers like Bosch have announced significant job cuts, citing the high costs of the electric transition and shifting market dynamics. Executives from companies like Mercedes-Benz have urged a “reality check,” stating that the 2035 goals may no longer be feasible and advocating for flexibility to allow hybrid technologies to persist. This sentiment is fueled by concerns that Europe lacks a sufficient charging infrastructure and that the high price of EVs remains a barrier for many consumers.
A Politically Divided Landscape
The debate over the combustion engine ban is causing clear political friction. Within Germany, Merz’s CDU stands in opposition to its own coalition partners, the Social Democrats (SPD), who have expressed strong reservations about overturning a settled EU law, citing the need for planning security for the industry. This internal division highlights the broader ideological struggle between climate goals and industrial preservation that defines much of Europe’s green transition.
Across the European Union, the sentiment is similarly fractured. Italy and the Czech Republic have also voiced opposition to the 2035 timeline, advocating for a greater role for biofuels and an earlier review of the policy. In contrast, a coalition of over 150 EV industry leaders, including Volvo, has publicly urged the European Commission to stand firm, arguing that regulatory certainty is essential to protect the hundreds of billions of euros already invested in electrification and to avoid ceding a competitive advantage to global rivals. Environmental groups argue that walking back the ban would be disastrous for the climate and would only delay the inevitable technological shift, ultimately making the German auto industry less competitive in the long run.
The Technological and Infrastructure Reality
Charging Forward, With Gaps
A key argument against the 2035 ban centers on the readiness of Europe’s charging infrastructure. While significant progress has been made, disparities remain. Germany, France, and the Netherlands together account for over 60% of all public charging points in the EU. Germany itself leads Europe with over 140,000 public chargers. However, the growth in EV sales has historically outpaced the installation of chargers, and vast rural areas across the continent remain underserved, particularly with high-speed DC fast chargers.
Proponents of the ban counter that the infrastructure is rapidly expanding, with total charging capacity growing significantly. Furthermore, they argue that Merz’s proposal to allow hybrid vehicles and cars with “range extenders”—small combustion engines that charge an EV’s battery—would dilute the policy’s impact and slow the build-out of a fully electric ecosystem. The debate thus remains centered on a fundamental question: whether to mandate a technological future to force innovation and infrastructure development, or to allow market forces and a mix of technologies to pave a more gradual, flexible path toward carbon neutrality.