Germany’s Chancellor Friedrich Merz criticizes EU proposal to mandate electric-only fleet purchases by 2030

German Chancellor Friedrich Merz has criticized a draft European Union plan that would force rental car companies and large corporations to switch their entire vehicle fleets to electric models by 2030, calling the proposal out of touch with economic and practical realities across the bloc.

“The proposals announced over the weekend regarding rental car fleets and electrification completely ignore the needs we have in Europe right now,” Merz said. “These are not the proposals that are right. Rather, we want to remain technologically open.”

The policy, still under internal discussion at the EU level, would require firms like Sixt SE and Europcar Mobility Group to buy only electric vehicles from the start of the next decade, part of a wider effort to decarbonize transport, one of Europe’s highest-polluting sectors.

Brussels’ blueprint gets backlash from Berlin

Underpinning the plan is the belief that targeting corporate and rental car fleets offers a fast-track route to cutting emissions: rental companies are among the largest buyers of new vehicles in Europe, and once those cars are resold into used markets, they could significantly boost EV adoption among consumers.

But Merz’s pushback is part of a growing resistance from national capitals wary of overreach from Brussels. The German leader, already locked in budget fights with the EU, has made clear that Berlin won’t rubber-stamp climate mandates that he says pile unrealistic expectations on businesses and citizens.

The European Commission has not yet released formal legislative text, but early drafts shared with national delegations indicate a strong push to make fleet electrification mandatory by 2030, with few exceptions.

Europe’s green unity under financial pressure

Automakers, too, are watching the debate closely. For companies still heavily reliant on combustion-engine models for revenue, the timeline could force difficult choices about production lines and supply chain contracts.

Germany, in particular, has long argued for a more flexible approach to mobility decarbonization. While it supports reducing emissions, Berlin has consistently championed technological neutrality, pushing to keep options like synthetic fuels and hydrogen on the table.

The fleet electrification plan would go beyond the EU’s goal of banning the sale of new internal combustion engine vehicles by 2035. While that policy has already sparked debate, this latest move ups the stakes by shifting the timeline forward and putting the burden on businesses first.

According to a Brussels lawmaker, the proposal could affect 60% of the new car business.

Supporters within the European Commission argue that time is of the essence. After a summer of record temperatures and intensifying pressure from COP29 commitments, Brussels sees transport emissions as one of the few remaining areas where aggressive policy can deliver fast climate wins.

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