Union Chief Blasts Diesel Ban Uncertainty

Union Chief Blasts Diesel Ban Uncertainty

The leader of the Confederation of German Trade Unions (DGB), Yasmin Fahimi, has voiced criticism regarding the ongoing debate surrounding the planned ban on internal combustion engine vehicles. She stated that continually revising targets undermines planning security and is counterproductive.

Fahimi emphasized the critical need to actively promote electric vehicle adoption through clear and targeted incentives. She suggested tax breaks as a viable method to make electric vehicle purchases more accessible, prioritizing lower-income households, drawing parallels with the “social leasing” programs seen in France. Beyond incentives, Fahimi stressed the necessity of accelerating the expansion of charging infrastructure and ensuring price transparency at charging stations. She also called on the automotive industry to develop and offer affordable, electric-powered compact cars.

Expressing disappointment with the economic policies of the current German coalition government, Fahimi warned of a potential decline in industrial capacity and a lasting detrimental impact on the national economy. She argued that current priorities are misplaced, with excessive focus on issues like potential welfare cuts rather than addressing the urgent needs of industry.

Fahimi sharply criticized proposals to reduce corporate tax rates, arguing that such broad measures distribute funds inefficiently. Instead, she advocated for a proactive industrial policy focused on targeted investments that secure locations and employment. She reiterated that businesses require predictability in areas like power plant strategies and the development of hydrogen infrastructure, proposing an industrial electricity price to lower energy costs. Energy-intensive industries should, she added, retain free CO2 certificates in the emissions trading scheme.

Finally, Fahimi condemned the plan by the Federal Minister for Economic Affairs to eliminate feed-in tariffs for new and small photovoltaic installations. She characterized this as a significant error and a misguided signal for the energy transition, arguing that access to affordable solar power benefits both consumers and incentivizes the continued use of fossil fuels.