German Chancellor Olaf Scholz announced that the European Union is developing an incentive plan to promote the purchase of electric vehicles (EVs) in an effort to support the bloc’s automotive industry, which is currently facing low demand in this sector.
Speaking at the World Economic Forum in Davos, Scholz emphasised that Europe must strengthen its economy and reduce bureaucracy to address global challenges.
He also underscored the need for pragmatic, non-ideological solutions and expressed his satisfaction that European Commission President Ursula von der Leyen has revived his proposal for harmonised incentives for EVs across Europe.
The announcement comes at a challenging time, as Europe’s automotive industry faces pressures from global competition, while U.S. President Donald Trump is reportedly considering eliminating subsidies for electric vehicles in the United States.
Furthermore, Scholz reaffirmed that electric mobility is the future and warned that questioning this transition harms the industry.
As part of their electoral programme, his Social Democratic Party is proposing a temporary tax deduction to encourage the purchase of EVs manufactured in Germany.
Finally, Von der Leyen reiterated the EU’s commitment to phasing out combustion engines by 2035 and highlighted the importance of leading in clean technologies.
Source: Bloomberg
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