Following the budget ruling, SPD urges a gradual halt to e-car subsidies 🚗💸
In the eyes of the SPD parliamentary group in Germany's Bundestag, the abrupt halt to electric vehicle (EV) subsidies is unwelcome. As announced by the Ministry of Economic Affairs and Climate Action under Green Party leader Robert Habeck, the subsidy application deadline is set to end this Sunday at midnight. Three deputy leaders of the SPD parliamentary group voiced their disapproval to the German Press Agency, stating, "We believe the funding halt on December 17, announced unexpectedly on Saturday, is highly regrettable."
Detlef Müller, Matthias Miersch, and Verena Hubertz reiterated the people's expectation for realistic transition periods from political decision-makers. "When purchasing a new car, most people carefully consider their finances, considering the premium as part of their budgets," said the SPD deputies.
In principle, they support the premature expiry of the subsidy. "Given the overall financial situation in Germany, savings must be made in various sectors. As part of the coalition's agreement, the e-car subsidy program will be phased out," explained the three Social Democrats.
The Ministry of Economic Affairs announced that the e-car subsidy was initially scheduled to expire at the end of 2024, or sooner if the funds were depleted. As of this Saturday, the Federal Office of Economics and Export Control (Bafa) will only continue to process applications received by the end of this Sunday. Approved subsidies will not be affected and will still be paid out.
The Zentralverband Deutsches Kraftfahrzeuggewerbe (ZDK) strongly criticized the abrupt end to funding. ZDK President Arne Joswig explained, "This is a breach of trust for tens of thousands of customers who ordered their electric vehicles under the assumption that the subsidy would be paid out." His proposal to extend the environmental bonus until the end of 2023 and keep registration offices open until December 31 gives customers a chance to complete their registration processes.
Examining the Subsidy Situation
The Ministry of Economic Affairs’s abrupt decision to halt subsidies resulted from legal and financial concerns, making a significant impact on the EV market in Germany and Europe.
Stakeholder Reactions
Various political parties and organizations like SPD, CDU/CSU, Green Party, and AfD have provided their opinions on the issue.
EU’s Response
In response to the challenges faced by the European EV market, the European Union is planning a unified subsidy program to boost the sector and counter China's growing influence.
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