EU combustion engine phase-out: France and Spain push for electric car investments

CO2 Regulation Spain and France Support a Widespread Phase-Out of Combustion Engines

2025-10-24 From Andreas Wehner | Translated by AI 1 min Reading Time

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Billions for electric cars, a firm stance against major exceptions: France and Spain are pushing for the so-called EU combustion engine phase-out. However, there could be a loophole.

France and Spain support the planned widespread phase-out of combustion engines starting in 2035. In a joint paper, both countries warn against weakening this goal. The EU decision must not be called into question. "The future of the European automotive industry will be electric," states the paper obtained by the German Press Agency.

The Commission, under pressure from the automotive industry, announced plans to review the corresponding regulation later this year. Paris and Madrid emphasize that billions of euros have been invested in the electrification of the European automotive industry since 2023. This strategic course must remain in place.

France and Spain hope that the upcoming review will maintain the 2035 cap and environmental ambitions for CO2 emissions, the paper states. In particular, the revision should in no way call into question the zero-emission exhaust target for 2035.

France And Spain Also Want Relaxations

France and Spain, however, are also advocating for relaxations. These should be strictly tied to production efforts in Europe. Proposed are so-called super credits for vehicles with a high European value-added share.

This is intended to further reduce CO2 emissions. Whether this would allow the sale of new combustion engines—such as by crediting additional saved emissions—even after 2035, was initially unclear.

Both countries also oppose favoritism for plug-in hybrid vehicles after 2035. The EU Commission demonstrated in 2024 that their actual emissions are 3.5 times higher than measured during approval tests.

Criticism from the German Automotive Industry

"The proposals from France and Spain, however, largely go in the wrong direction," stated the German Association of the Automotive Industry (VDA). For example, requirements for value creation in the EU are fundamentally the wrong approach for the automotive industry, "as our supply chains are internationally interconnected." Protectionism carries the risk of countermeasures and cannot compensate for locational disadvantages.

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