Merz Urges EU to Lift Combustion Engine Ban as Industry Declines

German Chancellor Friedrich Merz called on the European Union to give up its 2035 deadline to effectively ban combustion engines and instead allow the troubled car industry to pursue a softer path to climate neutrality.

His comments, the strongest to date, come as EU leaders brace for discussions about tightening a 2040 climate goal. The pace of the green transition and its impact on the industry has risen to the top of the bloc’s political agenda as it grapples with sluggish economic growth, the need to boost defense spending and the risk of trade conflicts.