The German government has decided to abruptly end aid for the purchase of an electric car, a withdrawal that could deal a serious blow to a German car industry already struggling to cope with the ecological transition, experts and experts told The Associated Press on Sunday. the specialized press.
The premiums for the purchase of an electric car are victims of the budget crisis after the financial earthquake triggered in November by the German Constitutional Court, which annulled the reallocation of credits not used during the pandemic to green investments and support for the industry. The Ministry of Economy announced on Saturday that applications would not be accepted after Sunday.
A ministry spokesperson acknowledged that this removal created “an unfortunate situation” for consumers who hoped to benefit from the bonus on the purchase of an electric vehicle. But this decision was necessary “because there is no longer enough money available to deal with requests received after Sunday,” the spokesperson said.
Hard blow for the industry
According to analyst Ferdinand Dudenhoeffer of the Center for Automotive Research, this decision could have dramatic consequences. “The competitiveness of (car) manufacturers will be seriously damaged,” Ferdinand Dudenhoeffer told the Rheinische Post newspaper.
Business daily Handelsblatt warned that scrapping the bonus could jeopardize Germany’s goal of putting 15 million electric cars on the road by 2030. “This goal was already considered extremely unrealistic. Now it seems completely illusory,” the paper says. According to the Ministry of Economy, since 2016 a total of 10 billion euros have been allocated to around 2.1 million electric vehicles.
chinese competition
The flagships of the German automobile industry are struggling to transition to green mobility against a backdrop of a weakening global economy and weak demand. In addition, German manufacturers face competition from Chinese rivals, although China is one of their main markets. “The Chinese are enormously increasing their automobile industry because they have consumers. Our manufacturers no longer have them,” said Ferdinand Dudenhoeffe.
The Constitutional Court ruled in November that the Government had violated constitutional budget rules by reallocating €60 billion in spending planned in the context of the pandemic to the fight against global warming. The Constitutional Court’s decision created a huge budget hole and plunged Chancellor Olaf Scholz’s coalition into confusion.
On Wednesday, the German chancellor and her coalition reached a last-minute deal to solve the budget puzzle through spending cuts. The government majority has chosen to cut public spending to cover a budget hole of 17 billion euros in 2024.
Source: BFM TV
