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Date: February 4, 2025
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By Javiera Altamirano
European Commision

Hayer (Renew Europe): “Europe must stay firm on the green transition despite Trump”

While the U.S. administration “turns its back” on the eMobility transition, the European Union is working on various initiatives to accelerate it. In this context, MEPs acknowledge the importance of having a stable regulatory framework. Could it turn what might be a failure into a success?
Hayer (Renew Europe)
Valérie Hayer, MEP and President Renew Europe Group.

During his presidential inauguration speech, Donald Trump reaffirmed his commitment to the domestic oil and gas industry, declaring his intention to “end the new ‘Green Deal’” and revoke the electric vehicle (EV) mandate in the United States (US).

However, while the US administration takes a step back in the transition towards electric mobility, Europe reaffirms its commitment to decarbonising this sector.

Even if the Trump administration turns its back on the green transition, Europe must stay firm in its objectives,” stated Valérie Hayer, President of the Renew Europe group, during the Supporting European Automotive Sector event.

The MEP also stressed that a stable regulatory framework is crucial for Europe to consolidate its leadership in clean industries for the future.

Currently, the automotive sector accounts for 8% of the European Union’s GDP and employs nearly three million people.

Nevertheless, the transformation of the global market demands a shift towards carbon-neutral industries to secure its leadership.

According to Hayer, the key lies in maintaining competitiveness without compromising climate goals:

Yvan Verougstraete, MEP, Renew Europe Group.
Yvan Verougstraete, Member of Renew Europe Group.

“Our goal is to decarbonise the automotive industry. That is why one of Renew Europe’s top priorities is to stay on course with our environmental commitments.”

Yvan Verougstraete, Member of Renew Europe Group, aligns with Hayer’s stance.

“The ban on polluting vehicles is set for 2035, which means we have ten years to turn what could be a failure into a success,” stated Verougstraete.

He went on to say: “But we won’t achieve this by ignoring obstacles and delaying our targets. No one wants the European automotive industry to end up like Nokia or BlackBerry in the telecom sector.”

Challenges of the Automotive Sector: Why is Regulatory Stability Important?

The automotive industry has long contributed to Europe’s prosperity, driving innovation and fostering job creation.

However, it is now facing significant challenges.

“It is important to have this discussion now, as we are dealing with a complex ecosystem and challenging times in this sector,” stated Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism.

On the one hand, the global competitiveness of this industry is being impacted by high energy prices.

Labour shortages and the scarcity of raw materials are also adding to the difficulties.

“Demand in the EU is declining. Furthermore, there is unfair competition in the form of heavy-duty vehicles and massive overcapacity in China,” acknowledged Tzitzikostas.

He further added: “Although we have been technology leaders in the automotive industry, we are not winning the race in batteries, microelectronics, or software.”

All these factors are causing production volumes to remain significantly lower compared to the pre-COVID-19 period.

“Suppliers are under pressure to cut costs, and factories are shutting down, putting thousands of jobs at risk across the entire value chain,” he lamented.

“The sector is undergoing a profound transformation and needs our support,” he emphasised.

Apostolos Tzitzikostas, European Commissioner for Sustainable Transport and Tourism, during the "Supporting European Automotive Sector" event.
Apostolos Tzitzikostas during the “Supporting European Automotive Sector” event.

In this regard, Tzitzikostas reaffirmed what Valérie Hayer considers a priority: “We need regulatory stability to provide certainty for investors and confidence for potential buyers.”

The reality is that proposals to radically alter the current regulatory framework are putting key decisions by industry players at risk.

“This does not mean that adjustments cannot be made to drive new developments or address emerging needs,” the MEP explained.

The report looks at the challenges faced by the industry and companies in the Single Market.

For example, Mario Draghi’s report, authored by the former President of the European Central Bank and one of Europe’s leading economic minds, calls for improvements in innovation and leadership in emerging technologies and key capabilities.

Tzitzikostas expressed his agreement with the report, stating: “The EU industry is far behind in software and the next generation of batteries. Therefore, we need a shift in approach to ensure that our SMEs and startups remain competitive.”

Moreover, the MEP stressed the need for a regulatory framework for connected and autonomous mobility, which maximises the use of data and artificial intelligence while ensuring the safe deployment of automated driving.

“This requires large-scale innovation, cross-border testing grounds, and, of course, a favourable regulatory environment,” he explained.

He also encouraged industry action: “These cutting-edge technologies represent an opportunity for the European automotive sector to develop new markets and innovate while minimising dependence on fossil fuels.”

In this context, it is clear that a comprehensive approach to the entire value chain is necessary, from sourcing raw materials to battery recycling.

“The Green Industrial Deal, set to be presented in February, will address key challenges, including access to affordable energy and advancing circularity,” the MEP concluded.

It’s Now: Europe Takes Action on the Green Transition

According to MEPs, the ongoing competitiveness of the European automotive sector and its green transition are the European Commission’s top priority.

Member of the European Parliament (MEP) Pascal Canfin.
MEP Pascal Canfin.

For this reason, various initiatives are being developed to support these objectives.

“This is an important moment for the Renew Europe Group because we are in the process of defining our position on several key issues under discussion,” stated Member of the European Parliament (MEP) Pascal Canfin.

On 30 January, the European Commission launched a Strategic Dialogue with the European automotive industry, social partners, and other key stakeholders to safeguard the future of the sector and advance its climate objectives.

Additionally, by the end of February, the Commission’s Automotive Sector Plan and the Clean Industrial Deal will be presented.

“All of this is on our table and will arrive soon. So now is the time to make decisions,” said Canfin.

He added: “We want to create the necessary conditions to ensure the success of this transition.”

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