Sunday, February 15, 2026

European Commission’s Auto Package Aims to Boost Competitiveness vs China and the US

AUTOMOTIVEEuropean Commission’s Auto Package Aims to Boost Competitiveness vs China and the US

In December, the European Commission proposed new solutions under which vehicle manufacturers would be required, within ten years, to meet a 90% reduction target for CO₂ emissions. This approach would replace the previously adopted ban on the sale of internal combustion engine (ICE) vehicles, which was originally scheduled to take effect in 2035. The proposed new package is the Commission’s response to calls from representatives of the EU automotive industry to strengthen its competitiveness vis-à-vis China and the United States. Polish Members of the European Parliament stress that urgent action in this area is necessary.

In April 2023, as part of the “Fit for 55” package, regulations entered into force setting CO₂ reduction targets for new passenger cars and light commercial vehicles. Under these rules, a ban on the registration of combustion-engine vehicles across the European Union was to apply from 2035. In December 2025, however, the European Commission proposed a review of the existing CO₂ emission standards for cars and vans, providing for a 90% emissions reduction from 2035 instead of the previously agreed zero-emission target. This proposal is subject to further negotiations and—if adopted—is intended to give manufacturers greater flexibility and support the competitiveness of the EU automotive industry.

“A clear majority of Members of the European Parliament have long been saying that we cannot abandon the option of purchasing combustion-engine cars. We repeatedly promised voters—Poles and Europeans alike—that we would do everything to prevent such a ban. Bans look good on paper, but they are often difficult to implement. Many EU countries still lack adequate infrastructure for charging electric vehicles,”
says Elżbieta Łukacijewska, a Member of the European Parliament from Civic Coalition, speaking to Newseria.

“The European Commission—under strong pressure from the European Parliament, the automotive industry, and simply common sense—has said that there will be no ban on producing and registering combustion-engine cars, but instead a 90% emissions reduction requirement will apply. In reality, this is essentially the same thing,”
argues Anna Zalewska, a Member of the European Parliament from Law and Justice.

The automotive package proposed by the European Commission assumes that, from 2035, car manufacturers will be required to meet a 90% reduction in tailpipe emissions. The remaining 10% of emissions would, according to the proposal, be offset through two mechanisms: the use of low-carbon steel produced in the EU, and emissions savings resulting from e-fuels and biofuels.

“The European Commission has a very costly plan for alternative fuels, synthetic fuels, or e-fuels. It wants to introduce them using extremely expensive technologies, including those based on hydrogen—specifically so-called green hydrogen produced through water-related processes. This is an enormous challenge,”
emphasizes Anna Zalewska.

According to the European Commission, the introduction of these new solutions would allow plug-in hybrids (PHEVs), range-extender vehicles, mild hybrids, and vehicles with combustion engines to continue playing an important role in the automotive industry after 2035. They would complement the offer of electric and hydrogen-powered vehicles.

“When we look at European industry, the economy, and jobs—at how many companies in Poland produce parts for combustion-engine cars—it all requires a rational, common-sense approach. At the same time, we must be aware that the world is moving fast, new technologies are being implemented, and Europe—while protecting jobs and industry—must also introduce innovations that will allow it to remain competitive,”
says Elżbieta Łukacijewska.

A December report by Eurofound shows that the EU automotive sector directly employs 6 million people, with another 6 million working in related industries and services. Since 2019, the pace of job reductions has clearly accelerated, reaching 7% between 2019 and 2023. In 2024 and early 2025, European companies laid off approximately 106,000 workers, with the largest job cuts recorded in France, Germany, and Italy.

“Automotive plants are closing in Germany, and there is despair because this industry has long been a source of national pride. The same is happening in France, Italy, the Czech Republic, and Poland—because these economies are all interconnected. We have lost competitiveness: when it comes to the balance between imports from China and exports of European cars to China, the advantage lies clearly with China,”
stresses the Law and Justice MEP.

“When we look at China, which is now a leader in battery and electric vehicle production, it is necessary to impose appropriate tariffs and requirements on products entering our market—both in the automotive sector and elsewhere—because otherwise this undermines our competitiveness, capabilities, and European companies,”
explains Elżbieta Łukacijewska.

Among the European Commission’s new proposals is a battery market strategy (“Battery Boost”) with a total value of €1.8 billion, aimed at accelerating the development of this sector in the EU. Part of the funds will be allocated to supporting European battery cell manufacturers through interest-free loans. The remaining resources will support investments, build a European value chain, foster innovation, and enhance coordination among Member States.

The Commission’s automotive package also introduces a new vehicle category under the initiative “Small Affordable Cars.” This refers to electric vehicles up to 4.2 meters in length. Until 2035, car manufacturers would be able to access dedicated funding to develop this category, encouraging the introduction of a greater number of small electric cars to the European market.

“All actions, proposals, and targets must take into account their impact on jobs, industrial development, competitiveness, and above all the financial capacity of EU citizens. Today, many electric vehicles are simply too expensive for consumers. Europe is talking about a small electric car as a possible solution. But we must not forget that across Europe there are millions of combustion-engine cars and millions of people who cannot afford to replace them,”
stresses the Civic Coalition MEP.
“The European Union is responsible for only about 6% of global CO₂ emissions, so we alone will not save the world—but we must do everything we can to ensure that our children and grandchildren live in a healthy society. Combining ambition with common sense delivers the best results.”

“Above all, the European Union must abandon its obsession and infection with the Green Deal, which is impossible to implement. The main problem is the massive ETS-related business of buying carbon emission allowances, which has nothing to do with environmental protection. The recent climate summit showed that the EU is essentially alone, and that it has made the European economy uncompetitive. We can no longer even see the backs of the Chinese, and we are struggling to compete with the United States. This is a necessity if the European Union is not to fall even further economically,”
concludes Anna Zalewska.

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