German Coalition Agrees on EV Incentives Worth €3 Billion

German Chancellor Friedrich Merz’s ruling alliance agreed on new purchase incentives for zero-emission vehicles worth €3 billion ($3.5 billion) through 2029, part of his government’s broader effort to support the nation’s ailing carmakers.

Merz announced the measures — targeted at low- and middle-income households — after talks with his Social Democrat partners in Berlin. The conservative leader is hosting top auto executives and labor officials later on Thursday to discuss the future of the industry, a key sector of Europe’s biggest economy that is struggling with increasing competition from China and uncertainty around US trade tariffs.