German Cabinet splits over EU combustion engine ban letter

Left-wing members of Germany’s ruling coalition were blindsided by a letter sent to the European Commission from their coalition partner and Italy, calling for an immediate change to legislation ending the sale of CO2-emitting cars from 2035.

The two countries “are united to ask the Commission for a change of course on the automotive sector, immediately,” the letter stated, according to a Monday press release by Italian Industry Minister Adolfo Urso, who cosigned the letter with German Economy Minister Katherina Reiche.

Both the letter and Reiche’s involvement came as a shock to the Social Democrats (SPD), who form the ruling coalition with Chancellor Friedrich Merz’s conservative Christian Democrats. The SPD did not know of the letter’s existence until POLITICO reached out for comment.

“We had no prior knowledge of this letter. We expect that industrial and climate policy issues will be coordinated within the federal government and that no unilateral action will be taken,” said Sebastian Roloff, an SPD member of the Bundestag.

The SPD is outraged because positions or regulations regarding car emission targets fall under the purview of the environment ministry, which is under the control of the SPD.

“The federal government is currently still coordinating its position. Therefore, this letter cannot reflect the position of the entire federal government,” said an environment ministry spokesperson.

Environment Minister Carsten Schneider on Monday reiterated his support for the 2035 goals in an interview with German newspaper Die Zeit.

“To put it bluntly, Germany’s weak growth — including in the automotive industry — was not caused by too much climate protection,” he said. “On the contrary, e-mobility is the future, and the industry is also orienting itself toward this. In order to achieve this change, the legal framework needs to provide planning security and reliability.”

POLITICO first reported on the negotiations among the capitals in July. Rome initiated the effort, approaching Paris and Berlin to draft a joint letter. Insiders across all three capitals told POLITICO the discussions took place at the highest levels.

Over the summer, Italian Prime Minister Giorgia Meloni mentioned her talks with Merz and French President Emmanuel Macron in an address to the Italian parliament.

France did not sign the letter. During a September EU Competitiveness Council, France made clear that any movement on the 2035 legislation would have to include requirements that cars be largely made in Europe — something both Berlin and Rome opposed.

Although the text of the letter has not yet been published, Italy has been lobbying hard against the 2035 legislation since its inception.

Merz, meanwhile, spoke out against the combustion engine ban on the campaign trail but took a more measured tone upon taking office in May, when he had to join with the more climate-conscious Social Democrats to form a government.

Although Germany ultimately supported the 2035 measure under the previous Commission, that backing came with numerous doubts and caveats. Conservatives have since shifted against the measure, with the European People’s Party, which includes the Christian Democrats, now calling for a rethink.

That’s created domestic political tensions as conservatives, backed by Germany’s powerful car sector, argue that ending the sale of combustion engine cars will hurt an industry that’s already facing huge problems in shifting to electric vehicles, as well as dealing with Chinese competition and the impact of U.S. President Donald Trump’s tariffs.

Last month, Merz broke with the coalition and told attendees at a Berlin event that the Commission needs to “lift this ban on combustion engines.”

The chancellery did not immediately comment or release a statement on the letter.