Berliner Boersenzeitung - Laggard Italy battles EU over green car transition

EUR -
AED 4.226703
AFN 74.809083
ALL 93.366242
AMD 421.567303
AOA 1055.381468
ARS 1719.449848
AUD 1.640637
AWG 2.074509
AZN 1.957249
BAM 1.956576
BBD 2.321601
BDT 142.336488
BHD 0.434667
BIF 3410.297857
BMD 1.150907
BND 1.478306
BOB 14.033569
BRL 5.874571
BSD 1.152657
BTN 109.839591
BWP 15.677085
BYN 3.369508
BYR 22557.772268
BZD 2.3183
CAD 1.616598
CDF 2603.351104
CHF 0.932579
CLF 0.026962
CLP 1064.60077
CNY 7.771607
CNH 7.778196
COP 3734.151472
CRC 523.600972
CUC 1.150907
CUP 30.499029
CVE 110.308777
CZK 24.207011
DJF 205.26146
DKK 7.475387
DOP 66.865665
DZD 153.041281
EGP 57.680572
ERN 17.263601
ETB 186.04661
FJD 2.550864
FKP 0.85368
GBP 0.857109
GEL 3.004299
GGP 0.85368
GHS 13.469345
GIP 0.85368
GMD 85.167178
GNF 10122.01702
GTQ 8.79449
GYD 241.535856
HKD 9.026072
HNL 30.895859
HRK 7.533949
HTG 150.711776
HUF 364.002457
IDR 20756.603207
ILS 3.50294
IMP 0.85368
INR 109.79449
IQD 1509.986133
IRR 1582784.505965
ISK 141.987624
JEP 0.85368
JMD 182.590083
JOD 0.815949
JPY 181.472098
KES 148.904491
KGS 100.64646
KHR 4657.909243
KMF 492.588362
KRW 1643.48298
KWD 0.356297
KYD 0.960573
KZT 546.782245
LAK 26070.346267
LBP 103225.869268
LKR 387.01359
LRD 208.062572
LSL 19.010244
LTL 3.398328
LVL 0.696172
LYD 7.346916
MAD 10.747665
MDL 20.125987
MGA 4909.884543
MKD 61.549426
MMK 2416.539498
MNT 4135.816267
MOP 9.310814
MRU 46.164719
MUR 54.023553
MVR 17.781718
MWK 1998.76718
MXN 19.920331
MYR 4.716391
MZN 73.540216
NAD 19.010079
NGN 1569.9408
NIO 42.416834
NOK 10.973378
NPR 175.741454
NZD 1.962146
OMR 0.442496
PAB 1.152657
PEN 3.893145
PGK 5.086953
PHP 70.231203
PKR 320.068341
PLN 4.313541
PYG 6875.728699
QAR 4.202068
RON 5.245859
RSD 117.369685
RUB 92.534153
RWF 1690.3488
SAR 4.309143
SBD 9.289148
SCR 16.688095
SDG 690.543907
SEK 11.007905
SGD 1.476441
SLE 28.139459
SOS 658.752847
SRD 43.511182
STD 23821.44602
STN 24.509407
SVC 10.085915
SZL 19.01338
THB 38.486074
TJS 10.645025
TMT 4.028174
TND 3.382442
TRY 54.726187
TTD 7.816034
TWD 37.251971
TZS 3048.749619
UAH 51.704646
UGX 4313.711938
USD 1.150907
UYU 46.358398
UZS 13820.364662
VES 860.707221
VND 30247.555708
VUV 137.015627
WST 3.147144
XAF 656.20887
XAG 0.019618
XAU 0.000284
XCD 3.110383
XCG 2.077406
XDR 0.816117
XOF 656.217426
XPF 119.331742
YER 274.383566
ZAR 19.003001
ZMK 10359.610349
ZMW 21.662409
ZWL 370.591503
  • CMSC

    -0.0800

    21.76

    -0.37%

  • RBGPF

    1.7800

    70.99

    +2.51%

  • GSK

    -0.1800

    51.51

    -0.35%

  • CMSD

    -0.0900

    22.02

    -0.41%

  • BCC

    6.6500

    83.03

    +8.01%

  • BTI

    -1.0900

    59.56

    -1.83%

  • RELX

    0.7400

    36.16

    +2.05%

  • RIO

    -0.9500

    95.9

    -0.99%

  • NGG

    -0.1100

    79.86

    -0.14%

  • BCE

    0.1100

    21.79

    +0.5%

  • RYCEF

    0.6500

    20.2

    +3.22%

  • JRI

    -0.1400

    12.82

    -1.09%

  • AZN

    -11.6700

    157.97

    -7.39%

  • VOD

    -0.1700

    15.61

    -1.09%

  • BP

    -0.9600

    44.26

    -2.17%

Laggard Italy battles EU over green car transition
Laggard Italy battles EU over green car transition / Photo: Marco BERTORELLO - AFP/File

Laggard Italy battles EU over green car transition

Italy's nationalist government is leading the revolt against EU plans to tighten vehicle emissions limits, vowing to defend the automotive industry in a country still attached to the combustion engine.

Text size:

Prime Minister Giorgia Meloni's hard-right coalition, which came into office last October, tried and failed to block EU plans to ban the sale of new cars running on fossil fuels by 2035, which her predecessor Mario Draghi had supported.

But this week the government took the fight to planned "Euro 7" standards on pollutants, joining with seven other EU member states -- including France and Poland -- to demand Brussels scrap limits due to come into force in July 2025.

"Italy is showing the way, our positions are more and more widely shared," said Enterprise Minister Adolfo Urso, a fervent defender of national industry in the face of what he has called an "ideological vision" of climate change.

The EU plan "is clearly wrong and not even useful from an environmental point of view", added Transport Minister Matteo Salvini, leader of the far-right League party, which shares power with Meloni's post-fascist Brothers of Italy.

Salvini led the failed charge against the ban on internal combustion engines, branding it "madness" that would "destroy thousands of jobs for Italian workers" while benefiting China, a leader in electric vehicles.

Federico Spadini from Greenpeace Italy lamented that "environmental and climate questions are always relegated to second place", blaming a "strong industrial lobby in Italy" in the automobile and energy sectors.

"None of the governments in recent years have been up to the environmental challenge," he told AFP.

"Unfortunately, Italy is not known in Europe as climate champion. And it's clear that with Meloni's government, the situation has deteriorated," he said.

- Demand is low -

Jobs are a big factor. In 2022, Italy had nearly 270,000 direct or indirect employees in the automotive sector, which accounted for 5.2 percent of GDP.

The European Association of Automotive Suppliers (CLEPA) has warned that switching to all electric cars could lead to more than 60,000 job losses in Italy by 2035 for automobile suppliers alone.

"Since Fiat was absorbed by Stellantis in 2021, Italy no longer has a large automobile industry, but it remains big in terms of components, which are all orientated towards traditional engines," noted Lorenzo Codogno, a former chief economist at the Italian Treasury.

For consumers too, the electric revolution has yet to arrive.

Italians are attached to their cars, ranking fourth behind Liechtenstein, Iceland and Luxembourg with 670 passenger cars per 1,000 inhabitants, according to the latest Eurostat figures from 2020.

But sales of electric cars fell by 26.9 percent in 2022, to just 3.7 percent of the market, against 12.1 percent for the EU average.

Subsidies to boost zero emissions vehicles fell flat, while Minister Urso has admitted that on infrastructure, "we are extremely behind".

- 'Risk turning into Cuba' -

Italy has just 36,000 electric charging stations, compared to 90,000 for the Netherlands, a country the fraction of the size of Italy, he revealed.

"There is no enthusiasm for electric cars in Italy," Felipe Munoz, an analyst with the automotive data company Jato Dynamics, told AFP.

"The offer is meagre, with just one model manufactured by national carmaker Fiat."

In addition, "purchasing power is not very high, people cannot afford electric vehicles, which are expensive. So the demand is low, unlike in Nordic countries."

Gerrit Marx, head of the Italian truck manufacturer Iveco, agrees.

"We risk turning into a big Cuba, with very old cars still driving around for years, because a part of the population will not be able to afford an electric model," he said.

(P.Werner--BBZ)