REVANCHISM

Italy Seeks Reversal of EU’s 2035 Combustion Engine Ban

By Alberto Brambilla

September 07, 2024

Traffic in front of the Colosseum in Rome, Italy, on Monday, June 12, 2023. Italy may crack down on use of e-scooters, hailed as either the future of urban transport or considered to be a menace on city streets that terrorizes pedestrians and litters sidewalks across Rome, Milan and other metropolises

 (Gaia Squarci/Bloomberg)

(Bloomberg) -- Italian officials said the European Union’s plan to ban sales of new internal combustion engines from 2035 should be reviewed.

“The ban must be changed,” Energy Minister Gilberto Pichetto Fratin said on the sidelines of the Ambrosetti Forum in Cernobbio, on the shores of Italy’s Lake Como, on Saturday.

Pichetto Fratin called the decision by the EU “absurd,” and dictated by an “ideological vision” along with a state-controlled approach to policy-making within the bloc. The plan needs changing in order to reflect different market realities amid the European auto industry’s slowdown, he added.

Industry Minister Adolfo Urso also backed a change, urging the incoming European Commission to anticipate the review of the plan to early 2025, from 2026. “In an uncertain landscape which is affecting German automotive industry, clarity is needed to not let the European industry collapse,” Urso said in Cernobbio.

“Europe needs a pragmatic vision, the ideological vision has failed. We need to acknowledge that,” he added.

Italy’s stance is far from new. The government coalition party League, led by Deputy Prime Minister Matteo Salvini, is ready to propose legislation to commit Premier Giorgia Meloni’s government to revoking the ban, according to a statement on Friday.

Italy’s officials have said they’re not against electric-vehicle development and production, but that it should be part of a more broader mix of automotive propulsion systems.

Stellantis NV sales in Italy are decreasing and the company plans to cut jobs. Volkswagen AG is considering factory closures in Germany for the first time in its 87-year history.

Luca de Meo, chief executive of France’s Renault SA, said in an interview on Sunday that European carmakers could incur as much as €15 billion ($16.6 billion) in fines if they can’t meet the EU’s ambitious climate goals following a slowdown in EV sales.

--With assistance from Flavia Rotondi.

(Updates with industry minister comments from fourth paragraph.)

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