Germany's ruling coalition of the CDU/CSU and SPD has formally endorsed a position that would weaken European Union rules on phasing out combustion engines and ease CO₂ fleet limits for carmakers, citing fears over industrial competitiveness and the loss of tens of thousands of jobs. The coalition's policy paper supports suspending a key plug-in hybrid accounting measure from 2027, allowing manufacturers greater flexibility to meet emissions targets and avoid billions in fines, while opposing EU proposals that would have required company fleets to include a minimum share of zero-emission vehicles. Environmental groups and transport NGO Transport & Environment have condemned the move as a "climate policy disaster," warning it will delay Europe's shift to fully electric vehicles, increase dependence on oil imports by an estimated €74 billion between 2026 and 2035, and widen the gap with China's electric vehicle industry — with EU-level negotiations on the measures expected to conclude in Brussels this summer.