Thursday, February 6, 2025

The EU is on the way with even more support for electric cars

German Chancellor Olaf Scholz says he is 'glad' that even more support is now on the way for the part of Europe's automotive industry that builds electric cars.

The EU is planning to introduce a new support scheme for the purchase of electric cars in all member states. German Chancellor Olaf Scholz confirmed the proposal during a speech at the World Economic Forum in Davos, eastern Switzerland.

In many EU countries, national subsidies for electric cars have been removed, which has led to a decline in sales. In Sweden, for example, sales fell by six percent last year. Now it seems that the EU will reverse this trend with a joint European effort.

"I am pleased that the Commission President has now taken up my proposal for harmonised Europe-wide support for electric cars," Scholz said, according to Bloomberg .

The proposal includes a so-called purchase bonus for anyone who buys an electric car in an EU country. The EU is thus going in the opposite direction from the US, which has removed a number of support schemes for electric cars.

For the German automotive industry, which is currently under pressure, such a support scheme would be a welcome relief.

"Electric mobility is the future, there is no doubt about that. Anyone who suggests otherwise is harming our industry," Scholz said in this regard.

European Commission President Ursula von der Leyen has stressed the importance of sticking to the EU's ambitious climate targets for the automotive industry. A new support scheme for electric cars may be necessary to achieve these targets.

"The next few years will be crucial to stay in the race for clean and new technology. Europe has what it takes to make this happen," Von der Leyen said during the Davos event.

It is not yet known when the new support scheme will come into effect, or how large it will be. The situation is clearly different in the USA, where the new president, among other things, spent his first day in office stopping government support for electric cars.

According to Donald Trump, the argument is that the competitiveness of the American auto industry must be strengthened and that Americans should be able to choose for themselves which fuel their cars run on.

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