Austria Joins Italian Initiative to Support EU Automotive Industry

Austria Joins Italian Initiative to Support EU Automotive Industry

APA/dpa/Matthias Balk

Austria will join an Italian initiative to support the European automotive industry, according to Minister of Economic Affairs Martin Kocher (ÖVP). “It’s about advancing the evaluation of the vehicle emission standards,” Kocher said on Thursday in Brussels before the media. The evaluation of the planned ban on the registration of combustion engines in 2035 is currently scheduled for 2026; the proposal is to bring it forward to 2025.

Starting in 2025, new, stricter EU emission limits for new passenger cars and light commercial vehicles will come into effect. According to the European Commission, these new regulations aim to reduce emissions from road traffic, which accounts for the highest share of transport-related emissions. The European automotive industry has voiced significant criticism, fearing for its global competitiveness. If the new standards are not met, penalties are threatened.

Such penalties would severely limit the industry’s ability to invest in innovation and development, thereby affecting Europe’s global competitiveness, according to a document obtained by APA. The European Automobile Manufacturers’ Association (ACEA) has expressed these concerns. The signatories from seven EU countries support the call for urgent action and adequate financial resources at the EU level. The goal is to “facilitate a fair transition that does not further undermine European competitiveness.”

Automotive Industry at a Critical Point

“The industry is at a critical juncture and faces significant challenges concerning production, employment, and global competition,” the document states, which will be discussed today at the EU Council of Competition Ministers. An evaluation of the CO2 emissions standards for new passenger cars and light commercial vehicles is therefore “urgently needed to maintain the competitiveness of the European automotive industry and prevent a drain of investments in the research and development of green technologies.”

A progress report and a comprehensive assessment must be “submitted by the EU Commission as soon as possible.” This report should include a “detailed evaluation of the contribution of alternative fuels and technologies to decarbonization, as well as an analysis of the economic and social impacts of the current legal framework.” Additionally, the “principle of technological neutrality” should recognize a broader range of clean vehicles, including sustainably powered internal combustion engines.

“The automotive industry is a key sector for Austria, accounting for around 6 percent of GDP and more than 350,000 jobs—across the EU, this sector provides over 14 million jobs. In this context, technological openness is crucial. As policymakers, it is our job to create flexible, innovation-friendly, and competitive conditions that give companies long-term planning security. We also call for a comprehensive overhaul of EU state aid laws to more effectively and targetedly support Austrian companies in the automotive sector during this transition,” said Minister of Labor and Economic Affairs Martin Kocher in a statement.

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