Commission offers various strategies to combat rising joblessness issue
In a recent development, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs, Labor, and Tourism of Baden-Württemberg, and Hubert Aiwanger, the Minister of Economic Affairs and Deputy Minister-President of the Free State of Bavaria, have written a letter to Ursula von der Leyen, the President of the European Commission, expressing concerns about a potential mandatory electrification of service and rental cars by 2030.
The ministers' concerns stem from the belief that such a mandate could undermine the endeavour to stabilise and strengthen the European and German automotive locations, which are currently facing significant challenges. Thousands of jobs in the industry are at stake, making it of utmost importance to find a balanced solution.
Aiwanger, in particular, has criticised bureaucracy as a threat to already struggling companies in the automotive industry. He advocates for openness to various technologies, including synthetic fuels, hydrogen, and efficient hybrid solutions, and calls for the EU to strengthen the innovative power of industry and facilitate investments in climate-friendly technologies.
In a similar vein, Dr. Hoffmeister-Kraut has demanded consistent action that takes into account technological openness, especially with regard to international competition. She has stated that they have just succeeded in getting the EU to accommodate manufacturers in the imminent threat of CO2 fleet limit penalties.
The ministers have also called for the financial scope of companies for investments in innovation and transformation not to be restricted. This is particularly important as the new EU regulation on CO fleet targets for company car and rental car fleets could effectively amount to a mandate for electric vehicles.
The Economic Ministers Conference in June 2025, chaired by Dr. Hoffmeister-Kraut, committed to the German automotive location and its jobs. The states have welcomed the additional flexibility granted at EU level for complying with the current CO2 fleet limits.
However, Aiwanger warns against endangering medium-sized businesses and jobs in the supply industry with new regulations and bans. He emphasises the need to manage the transformation and secure the German automotive location.
For more information, the Ministry of Economic Affairs, Labor, and Tourism of Baden-Württemberg can be contacted through their Press Office or Citizen's Representative. As the situation evolves, it will be interesting to see how the EU responds to the concerns raised by the German and Bavarian ministers.
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