EU Faces Balancing Act: Auto Industry Competitiveness vs. Emissions
In a strategic move, the European Commission is striving to bolster the competitiveness of the automotive sector while maintaining its commitment to emission reduction goals. This comes as the industry grapples with challenges like weak demand, stringent EU emissions targets, growing competition from Asia, and a slowdown in electric vehicle (EV) interest.
Kristian Ruby, secretary-general of Eurelectric, an industry association, acknowledged the EU’s supportive electric agenda. However, he stressed the necessity of avoiding any weakening of the existing commitments.
European Commission President Ursula von der Leyen is expected to unveil measures aimed at enhancing the industry’s competitiveness while adhering to the emission goals. Automakers have voiced opposition to the EU’s 2025 CO2 reduction targets and lobbied against non-compliance penalties. But von der Leyen has already eased pressures by adjusting the annual review rule, providing a three-year compliance period, up from one year.
The European automotive sector is a significant part of the continent’s economy, employing 13 million people and contributing roughly 7% of the GDP.
This information was originally reported on Radio Schuman, produced by Maïa de la Baume, with journalist and production assistant Eleonora Vasques, and with audio editing by David Brodheim. Music by Alexandre Jas.
