His government alliance German Chancellor Friedrich Mertz It has agreed to new 3 billion -euro zero -emission vehicles, by 2029, in the context of its government’s broader effort to support the country’s troubled automakers.

Mertz announced the measures – addressed to low and medium -income households – after conversations with his Social Democratic partners in Berlin. The conservative leader has hosted top -of -the -line executives and officials to discuss the future of the industry, a key sector of Europe’s largest economy struggling with increasing competition from China and the uncertainty around US trade duties, Bloomberg reports.

“We agree that we want to do what we can in the coalition under the responsibility of the federal government to ensure a bright future for German automotive“Mertz told reporters along with Finance Minister Lars Kleningbail, a SPD co -chairman, who is also a vice -rang.

The Coalition, which took over its duties in May, was expected to unite behind Mertz’s pressure on the European Union to lift the prohibition it has imposed in 2035 on new domestic combustion vehicles. The Chancellor said there would be further discussions with automakers on the ban and we hope to reach an agreement on a joint coalition attitude.

Mertz’s statement retreats from his previous line to push the EU to lift the ban, as its partners in the Coalition, the SPD, face difficulties with internal party differences.

The government first wants to speak with the automotive industry about what it takes, as well as waiting for the outcome of the European Commission’s revision of the target, which is expected by the end of the year, Martz said, according to the Automotive News Europe.

“We want to work within the EU to ensure that the decisions taken in Europe are also correct and necessary for the German automotive industry,” Merz said.

This could include additional flexibility capabilities for automakers for the 2030 target to reduce emissions by 55%, introducing an average calculation system over many years, similar to similar modifications made earlier this year to the 2025 target.

However, there is still a reluctance to lift the goal of selling only cars and zero emissions after 2035.

The Commission is already committed to creating an exception for so-called electronic fuels, which are produced by the use of committed COâ‚‚ and renewable energy and could also be used to supply new cars with combustion engine, plug-in hybrid vehicles and vehicles with extensive autonomy.