Ahead of crucial coalition committee deliberations and an automotive summit at the Chancellery, German Finance Minister Lars Klingbeil (SPD) has publicly indicated a willingness to soften the European Union’s ban on internal combustion engines, contingent upon guarantees of job security from automobile manufacturers.
Speaking to the news portal T-Online, Klingbeil expressed openness regarding models such as plug-in hybrids and range extenders, suggesting their operational lifespan could extend beyond the currently stipulated 2035 deadline. “However, this is only viable if we receive assurances that jobs are protected and climate targets remain in reach” he stated.
The apparent shift in position, while seemingly pragmatic, has ignited a debate over the integrity of Germany’s commitment to ambitious climate goals. Klingbeil cautioned against any broad-scale weakening of national and European climate targets, emphasizing their importance in signaling commitment. “To question these targets would send the wrong message. The future of the automotive industry is electric” he asserted, reiterating the 2035 benchmark as a guiding principle while advocating for increased technological flexibility in achieving it. He emphasized the expectation that automotive companies provide commitments regarding investment and the preservation of German industrial sites.
Recognizing the potential for job losses within the German automotive and steel sectors, Klingbeil proposed a policy adjustment: carbon-neutral steel produced in Europe and utilized in automobile manufacturing should be factored into the vehicles’ overall carbon footprint. This measure, he contends, would bolster the struggling steel industry while contributing to broader environmental objectives.
Klingbeil championed a doctrine of “healthy European patriotism” and “practical solutions” as essential for ensuring Germany’s economic resilience. He underscored the necessity of dramatically increasing the production and deployment of electric vehicles in the coming years, justifying the continued exemption of EVs from vehicle taxes. Expressing concern over potential reliance on Chinese-made automobiles, he affirmed his desire for Germany to remain a hub for the production of “the best cars” globally, implicitly suggesting a strategic industrial policy designed to safeguard domestic automotive dominance. The proposal highlights a tension between Germany’s climate ambitions and the political realities of maintaining industrial competitiveness and protecting employment, raising questions about the long-term viability of its climate transition strategy.