The German government, under a coalition agreement between CDU, CSU, and SPD, is advocating for relaxing the EU's strict regulations on new combustion engine cars after 2035. Currently, EU rules prohibit the approval of new cars with petrol or diesel engines from 2035 to reduce CO2 emissions in the transport sector. Despite some emission reductions in Germany between 1990 and 2023, the sector lags behind other industries in climate efforts. The coalition proposes allowing 'highly efficient' combustion engines, plug-in hybrids, and vehicles with range extenders to continue on European roads beyond 2035, arguing this would balance climate goals with industrial competitiveness and job preservation. Chancellor Friedrich Merz plans to write to EU Commission President Ursula von der Leyen to seek amendments, emphasizing the need for technology openness and flexibility. The coalition also supports a new subsidy program for electric and hybrid vehicles aimed at lower-income households, expected to start in 2026 pending EU approval. Meanwhile, the EU Commission is set to review Germany's proposals, with a draft expected on December 10, 2025. The debate reflects broader tensions within the EU, with some countries like France and Spain favoring maintaining the original emission standards. The discussion highlights the slow progress of electric mobility in Germany, with a recent decline in EV sales due to policy changes and market dynamics. The EU's decision will significantly influence the future of automotive emissions regulation and industry strategies in Europe.