Merz from Germany Calls on EU to Relax 2035 Ban on Combustion Engines

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Nov 28 2025

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Source: Reuters

Chancellor's Appeal: German Chancellor Friedrich Merz has urged the European Commission to reconsider its planned ban on new combustion-engine cars by 2035, advocating for more flexibility in the transition to electric vehicles due to competitive pressures and slow EV adoption.
Government Agreement: The German government has reached a consensus to seek exemptions for plug-in hybrids and efficient combustion engines, emphasizing the need for a technology-neutral approach to CO2 regulations that supports innovation and industrial growth.
Industry Response: Major car manufacturers like Volkswagen, Mercedes, and BMW are lobbying for transitional technologies as they face challenges in EV uptake, while the VDA car lobby has welcomed the government's push for exemptions.
Criticism and Alternatives: Campaign group Transport and Environment criticized the reliance on outdated combustion-engine technology, suggesting that regulations encouraging corporate fleets to electrify could significantly increase the production of locally made EVs by 2030.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.