Germany, Italy Signal They Could Block EU Combustion-Engine Ban
Opposition to a major plank of the bloc’s climate plans comes as the move to EVs threatens jobs in Europe
3 min
A group of large European Union countries is threatening to block a plan by Brussels to effectively ban the internal combustion engine, endangering the bloc’s ambitious agenda to combat climate change.
Germany and Italy said this week they could block the plan’s formal approval at crucial meetings this week and next. Berlin said it would oppose the plan unless Brussels agrees to allow so-called synthetic fuels that can burn like gasoline and diesel but spew fewer climate-damaging emissions alongside fully electric vehicles.
Under the leadership of the European Commission, the EU’s executive body, Europe has adopted an ambitious plan to fight climate-change-causing greenhouse-gas emissions. The plan relies heavily on the mass adoption of electric vehicles and effectively bans new combustion-engine vehicles from 2035.
Parts of the auto industry, which employs 3.4 million people in the EU—nearly 12% of all manufacturing jobs—have pushed back, arguing that including so-called e-fuels into the plan would allow emission targets to be hit while stretching the costly move away from combustion engines over decades.
Some governments have expressed sympathy with the demand as the move to electric vehicles, which are less complex to produce than their combustion rivals, threatens large numbers of jobs in the region.
Under a compromise reached last October, lawmakers agreed that the European Commission could put forward additional rules allowing new vehicles with engines that use carbon-neutral fuels to continue to be sold, but it has yet to do so.
German Transport Minister Volker Wissing on Tuesday said Berlin now wanted Brussels to present this legislation ahead of the plan’s approval, saying that because it had yet to do so, “the German government cannot approve the compromise.”
Italy’s Environment Ministry said that environmental targets should be pursued in a way that avoids harming jobs and production and that electric vehicles shouldn’t be seen as the only route to zero emissions.
Two other countries have also pushed back on the legislation. Poland has informed other member states it plans to vote against the plan, and Bulgaria has indicated it plans to abstain, four EU diplomats said. Poland’s government has previously said that such a ban would restrict consumer choice and lead to higher costs. By acting together, those countries have enough votes to block the plan’s approval.
A spokesman for the commission said it is up to the commission’s political leadership to determine what legislation to propose and when to do so. “The transition to zero-emissions vehicles is absolutely necessary” to meet the bloc’s climate targets, he said.
The European car sector and countries that have begun investing heavily in e-fuel development have spearheaded the effort against the provision in the commission’s plan stating that vehicles should be emissions-free by 2035—a de facto combustion-engine ban.
Germany, home to the region’s largest car makers, said this week that it would soon approve the use of synthetic fuels in the country, a move that would force Brussels to either follow suit or challenge the German law.
German auto makers, including Volkswagen AG, Mercedes-Benz Group AG, Porsche AG and Bayerische Motoren Werke AG, have pushed for the use of synthetic fuels to be allowed.
“I’m in favor of intelligent solutions rather than blanket bans,” VW CEO Oliver Blume was quoted as saying in the weekly Welt am Sonntag newspaper in January, adding: “E-fuels are a sensible addition to electric mobility.”
The shift to electric cars is beginning to affect auto-industry employment, raising concerns among politicians that the transition could be moving too fast.
Stellantis NV, which includes Italian auto maker Fiat, this week announced it would cut 2,000 jobs in Italy. Ford Motor Co. recently said it would shed about 3,800 jobs in Germany and the U.K., or around 11% of its European workforce, because fewer employees were needed as the company shifted to electric vehicles.
Meanwhile, Carlos Tavares, chief executive of Stellantis NV, whose brands include Fiat, Peugeot, Jeep and Chrysler, warned on an earnings call with reporters last month that the industry may be getting ahead of its customers.
“I don’t know if people will adapt to a new lifestyle as fast as the car companies have adapted to a new technology,” he said.
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Sydney Children’s Hospitals Foundation CEO Kristina Keneally says Australia’s culture of large-scale philanthropy is becoming more sophisticated as Gold Dinner raises $75.5 million for children’s health, research and innovation.
3 min
Australia’s wealthiest donors are becoming more strategic, more ambitious and increasingly focused on creating measurable impact, according to Sydney Children’s Hospitals Foundation chief executive Kristina Keneally.
Speaking after the 2026 Gold Dinner, held last week in Sydney, Keneally said Australia was experiencing a significant shift in how major philanthropy is viewed, with large-scale giving increasingly part of conversations about leadership, legacy and social impact.
The annual Gold Dinner, now in its 29th year, brought together some of the country’s most influential business leaders, philanthropists and cultural figures, raising $75.5 million and counting in support of the Sydney Children’s Hospitals Network.
While the event has become one of Australia’s most prestigious fundraising gatherings, Keneally said its significance extends far beyond a single evening.
“Gold Dinner, the flagship event of Sydney Children’s Hospitals Foundation, represents far more than a single evening. It is a powerful demonstration of what a committed community can achieve together over 12 months,” she said.
“The strength of that community, and the trust built over nearly three decades, means people return not just for the event, but for the impact they know it delivers.”
A NEW ERA OF PHILANTHROPY
Large-scale philanthropy has long been a feature of American society, where charitable foundations and major donors often play a prominent role in funding medical research, education and social programs.
Keneally believes Australia is moving in a similar direction.
“Australia is building a stronger culture of large-scale philanthropy, but it is still evolving compared to the United States, where giving at scale is more deeply embedded and widely recognised,” she said.
She said the country’s philanthropic landscape was becoming more sophisticated as successful business leaders increasingly sought opportunities to create meaningful change through their giving.
“In Australia, while generosity has always been strong, large-scale giving has historically been less visible, but that is changing rapidly as more leaders embrace philanthropy as a powerful way to drive meaningful outcomes.”
According to Keneally, events such as the Gold Dinner are helping reshape public perceptions of philanthropy by demonstrating the tangible outcomes that major donations can achieve.
“Gold Dinner is helping to reshape how philanthropy is perceived in Australia, making it more visible, more aspirational and more connected to real-world outcomes,” she said.
WHERE THE MONEY GOES
The funds raised through Gold Dinner support clinical care, research and innovation across the Sydney Children’s Hospitals Network.
Over the past 12 months, more than $75.5 million has been raised to help fund advanced medical equipment, innovative care models and world-leading medical research. Areas of focus include precision medicine and early diagnosis, where emerging technologies are already changing how childhood illnesses are detected and treated.
Keneally said the impact is felt directly by children and families facing some of the most difficult moments of their lives.
“For children and families, this translates into very real and immediate impact. It means faster diagnoses, earlier access to life-saving treatments, and care that is more personalised and effective,” she said.
“It also ensures hospitals are equipped not just to respond to illness, but to reimagine what care can look like, giving children the best possible chance not only to survive, but to live full, healthy lives.”
BUSINESS LEADERS BACKING CHANGE
One of the defining characteristics of Gold Dinner is the calibre of its supporters.
The event has evolved into a meeting point for influential leaders from business, culture and philanthropy, many of whom see charitable giving as an extension of their professional and personal legacy.
“It speaks to a community that is not only generous, but increasingly ambitious in how it gives, combining influence, expertise and purpose to achieve outcomes at scale,” Keneally said.
Among the major supporters of this year’s event were Presenting Partner, John-Paul Nassif Foundation; Major Partners, ABC Bullion, Shaw and Partners Financial Services and One Circular Quay by Lendlease; and Premier Partner, Range Rover, whose ongoing support reflects a shared philosophy of legacy and long-term impact.
The evening also featured performances, premium hospitality experiences and fundraising initiatives designed to encourage further support for children’s health services and research.
LOOKING BEYOND NEW HOSPITALS
With major new children’s hospital developments at Randwick and Westmead progressing, Keneally said the focus is increasingly turning towards what comes next.
“The long-term vision is to ensure every child has access to world-leading healthcare, care that continues to evolve through innovation, research and global collaboration,” she said.
The foundation’s future priorities include accelerating medical discovery, expanding access to cutting-edge treatments and helping position New South Wales as a global leader in children’s health.
Keneally said the Gold Dinner remains central to achieving those ambitions because it does more than raise money.
“Gold Dinner is critical to making that vision possible. It not only provides significant funding, but also unites a powerful network of supporters who are driving the future of philanthropy in Australia,” she said.
As Australia’s culture of philanthropy continues to mature, Keneally believes that the network will play an increasingly important role in shaping the future of healthcare for generations to come.
“The result is a community that is helping to shape the future of paediatric care, not just for today’s patients, but for generations to come.”
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