Hard Cut-Off on ICE Cars: German Chancellor Friedrich Merz said on Friday he would send a letter to the European Union Commission urging it to revisit EU rules that will effectively end sales of new carbon dioxide-emitting cars from 2035 to allow for more technological openness.

The conservative chancellor has long agreed with Germany's key car industry, which is facing stiff competition from China, that the timeline for phasing out combustion-engine vehicles and switching to electric cars is unrealistic.

But his party's junior coalition partner, the Social Democrats, had been more divided on the matter. On Thursday, the coalition government agreed to ask the EU for exemptions for plug-in hybrids and highly efficient combustion engines, Merz said.

"We were all aware of the current situation in the automotive industry," Merz said, describing it as "precarious".

Stressing that Germany stood by climate protection goals, he said: "We want to achieve them with mobility that also preserves jobs in Europe and especially in the German automotive industry".
Merz's letter to Brussels outlining Berlin's position comes as the Commission, the executive arm of the EU, is set to unveil plans designed to boost Europe's automotive sector on December 10.

Underscoring a continued commitment to the EV revolution, Merz said the coalition had also agreed to launch a subsidy programme to support households with low or medium incomes in purchasing or leasing an electric or plug-in hybrid vehicle.

A basic subsidy of 3,000 euros is planned, which will be increased by 500 euros per child, up to a maximum of 1,000 euros, according to a coalition paper.

The programme should start as soon as possible next year, according to the paper.

However, it was not enough to allay criticism from campaign groups like Transport & Environment, which accused Berlin of clinging to the past with the decision that would only worsen carmakers' woes.

"Anyone who thinks that Germany will be able to secure jobs and value creation in the future with combustion-engine technology, which is already outdated today, is deliberately closing their eyes to reality," said T&E Germany chief Sebastian Bock.