Published by Global Banking & Finance Review®
Posted on July 21, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleChancellor Merz criticizes the EU's proposed 2030 mandate for rental firms to buy only EVs, fearing harm to the automotive industry.
BERLIN (Reuters) -German Chancellor Friedrich Merz on Monday criticised a reported draft EU plan to oblige car rental firms and large companies to buy only electric vehicles from 2030, saying it could contribute to destroying the bloc's important automotive industry.
German tabloid Bild Zeitung had on Saturday reported that the EU Commission was considering the move, citing anonymous EU sources. Such corporate fleets make up about 60% of new car sales, it said.
Merz said the proposals "completely miss the point of the current joint needs we have in Europe", noting the automotive industry was one of the region's core industries.
"We must not allow it to be destroyed by focussing on technologies that might not be market-ready enough by a given date for one to rely exclusively on that single technology," he told reporters. "That's why we oppose such rigid specifications."
"Europe is not open enough, not fast enough, not dynamic enough — and I want to help change that" he said.
Germany has a right to help formulate the EU's strategic outlook given it finances a quarter of the bloc's budget, he said.
(Reporting by Sarah Marsh, Editing by Chizu Nomiyama )
The EU is reportedly considering a plan to require car rental firms and large companies to purchase only electric vehicles starting in 2030.
Friedrich Merz criticized the proposal, stating it overlooks the current needs in Europe and could harm the automotive industry by focusing on technologies that may not be ready.
Corporate fleets account for about 60% of new car sales in Europe, highlighting their importance in the automotive market.
Merz emphasized that Germany has a right to influence the EU's strategic outlook, as it contributes a quarter of the bloc's budget.
Merz expressed a desire for Europe to become more open, fast, and dynamic, indicating a need for change in the region's approach to industry and technology.
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