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MNI INTERVIEW2: Poland To Push For EU Defence Fund
Auto Emission & Engine Disagreements Risk Further Ructions
The ongoing European Council summit in Brussels could be derailed somewhat by disagreements over proposed and existing legislation/regulations around auto emissions. German Chancellor Olaf Scholz is seen as keen gain exemptions for the (economically important) German autos sector that would see combustion engines running on e-fuels still allowed to be sold post-2035, when an EU ban on the polluting engine is set to come into place.
- The prime ministers of Slovakia and Czechia (also with sizeable autos sectors) have also weighed in, going further to demand discussion on the as-yet unapproved Euro 7 toxic emission standards. The rolling of the combustion engine/Euro 7 issues into the same discussions at the summit risks confrontation with the Commission, Parliament and nations that have backed the proposals.
- European Parliament President Roberta Metsola stated that “We cannot go back on deals because this is ultimately about trust between co-legislators and the credibility of the legislative process," arguing that the plan to ban combustion engines - passed by the parliament - should remain.
- It also risks internal disagreement within the German governing coalition. The environmentalist Greens - the second-largest in the three-party coalition alongside Scholz's centre-left Social Democrats and the pro-business liberal Free Democrats - are already at loggerheads with their coalition partners over plans to phase out oil and gas home heating systems. If Scholz is seen to be a major obstacle to the proposed ban on combustion engines it could further damage gov't relations in Berlin.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.