Saving the European automotive industry is at the heart of Ursula von der Leyen’s new mandate as leader of the European Union. After the rigorous bans dictated by the vision of the Green Deal, oriented towards reducing emissions, Brussels seems to be moving towards a change of direction. At the center of the debate is the ban on the registration of combustion vehicles (petrol and diesel) starting from 2035, with the entire sector expected to turn towards the conversion to electric.
However, the green transition of the automotive sector is going in slow motion and more and more actors are asking the EU to urgently review its plans, focusing in particular on a mix of solutions based on the principle of technological neutrality. Layoffs at Volkswagen, the internal crisis at Stellantis and the bankruptcy of the battery company Northvolt are putting ever greater pressure on politicians and governments. 2025 could prove to be the year of truth.
Italy’s position on the automotive sector
The automotive dossier appeared on the table of the Competitiveness Council last week, when the Italian Minister of Economic Development, Adolfo Urso, presented a document calling for an urgent revision of the regulation establishing a ban on combustion engines set for 2035 Together with the Czech Republic, Italy has presented a document to other EU ministers in which it asks Brussels to recognize a “wider range” of solutions beyond battery electric vehicles and hydrogen cars. The two countries also insisted that the review by the Commission, currently scheduled for 2026, be brought forward to 2025. During the meeting, Urso asked for the introduction of a “European Automotive Act”, i.e. a specific law dedicated to the European automotive industry to support it in the transition to electric.
Because the step backwards on the ban on petrol cars is closer
In addition to bringing the revision forward by one year, Giorgia Meloni’s government has also set some essential conditions in order to pursue the objective of stopping the registration of endothermic vehicles. Firstly, Rome asked for the establishment of a support fund for the automotive supply chain and for consumers who purchase electric cars produced in Europe. Secondly, it believes that greater attention is necessary to alternative solutions to electricity, such as biofuels, e-fuels and hydrogen, following the principle of technological neutrality. Finally, the definition of a European strategy on batteries and critical minerals was requested, in order to reduce dependence on China.
The position of the European centre-right
Other influential actors in Brussels are also moving in parallel with Italy’s requests. At the forefront is the European People’s Party (EPP), the political family that boasts the largest number of MEPs in the European Parliament and which leads the European Commission with its leader Ursula von der Leyen. “The next ban planned for 2035 on internal combustion engines should be lifted to reflect technological neutrality, thus allowing for a mix of technologies,” reads the leaked December 2 draft of a position paper the EPP is working on.
The European centre-right family, to which Forza Italia belongs, asks the EU executive to “urgently” present a revision of Regulation 2019/631″, which defines the performance levels in terms of CO2 emissions of new cars The document insists on the reintroduction of “a technologically neutral approach”, so that “the role of all technologies” in reducing carbon dioxide emissions is recognised.
A different role for alternative fuels
Like Italy, the EPP also insists on recognizing the role of alternative fuels, including e-fuels, biofuels, renewable or synthetic fuels. This should be accompanied by the provision of “explicit exemptions”, together with other measures such as the introduction of a carbon correction factor. All these elements would lead to a revision of the total ban on combustion engines starting from 2035.
The People’s Party, led by Manfred Weber, also ask for the start of a “Strategic Dialogue on the future of the automotive industry”, and the presentation “within the first 100 days of the new Commission” of a “Clean industrial deal”, that reviews the ban on internal combustion engines, helps to avoid sanctions and is able to develop favorable conditions for the EU automotive industry.
Among the commitments requested from Brussels is to intensify efforts to create infrastructure capable of improving the competitiveness of the sector, while at the same time achieving the decarbonisation of the transport sector. The definitive adoption of the document by the EPP is scheduled for 11 December. Until then, the draft document could still undergo slight changes, but once approved it could constitute the basis for Brussels’ change of direction to address the automotive sector.
