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
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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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From making unpopular decisions to learning when to listen, leaders from five businesses reveal what nobody prepared them for — and how running a company has challenged their expectations.
Technology and semiconductor shares fell sharply as investors questioned the debt financing the AI infrastructure boom and confronted higher rates and Chinese competition.
Elon Musk is exploring a potential merger between Tesla and SpaceX, a deal that could reshape the future of AI, robotics, autonomous vehicles and space technology. With a combined valuation potentially reaching $3.5 trillion, the move could bring Musk’s vision of an interconnected technology ecosystem closer to reality, although a deal remains uncertain.
5 min
Elon Musk has engineered ties between Tesla TSLA 3.41%increase; up pointing triangle and SpaceX SPCX 7.79%increase; up pointing triangle that are hard to break, and now he wants to fuse them together permanently.
Musk has run both Tesla and SpaceX concurrently over the past two decades, using a schedule that dictated which days he spent focused on each business.
The companies have often shared resources and personnel, signaling their close ties. Last year, SpaceX looked into creating a spacesuit for Tesla’s humanoid robot Optimus, a person familiar with the matter said. Tesla last week showed off its new Roadster, a vehicle featuring SpaceX rocket thrusters that it hopes to soon bring to market.
And in recent months, Musk has repositioned both companies by expanding beyond their core operations toward a shared mission centered on artificial intelligence.
The world’s richest man on Tuesday signaled his interest in tying up SpaceX and Tesla, marking what would be the biggest corporate merger of all time. Because he serves as chief executive of SpaceX and Tesla, Musk said committees of independent directors at both companies are evaluating a possible deal, adding that a transaction might not come to fruition.
The committees will likely evaluate, with lawyers and bankers, how each company would fare in a potential deal and how a deal might best be structured. They then present their conclusions to their respective boards, who typically vote on whether to proceed.
“It’s an odd Kabuki dance where two groups of people are talking and I can’t be in the conversation,” Musk told SpaceX investors on Tuesday in response to an analyst’s question about a potential deal.
For Musk, the merger supports his vision of a world full of autonomous cars, humanoid robots and weekly rocket launches, as well as the data centers and satellites required to keep the whole thing running.
Some investors and analysts said they expect a transaction would be structured as an all-stock deal, with SpaceX potentially paying a modest premium for Tesla shares.
SpaceX, which has a market value of about $2 trillion, said it is seeing sharp growth in revenue across its businesses, which include operating data centers, launching rockets and operating satellite networks such as the internet service Starlink. Tesla is valued at about $1.5 trillion and is expanding its operations beyond its automotive and energy business. Shares in both companies traded higher following the news Tuesday.
Musk’s substantial ownership stakes in both companies, along with voting control at SpaceX, has enabled him to set the deal in motion. Analysts and investors said the deal will probably face regulatory scrutiny internationally, though some see Musk’s close relationship with the Trump administration as an asset to getting approval.
Blurred lines
The companies haven’t said which directors are on the special committees evaluating a potential deal. Several SpaceX and Tesla board members have either personal or business ties to Musk. And like Musk, venture capitalist Ira Ehrenpreis sits on both boards.
In a filing this week, Tesla outlined millions of dollars in business agreements with SpaceX and its subsidiaries last year, including $143 million in car sales to SpaceX, $3.3 million in advertising that it bought on the social-media platform X and $430 million in revenue from the sale of Megapack batteries for SpaceX’s data centers.
The companies also split the cost of resources including the use of Musk’s SpaceX jet and the bill for his personal security, which he runs through a private company.
Employees at both companies routinely move between companies to work on special projects, and some executives have dual roles, including Charles Kuehmann, vice president of materials engineering at both SpaceX and Tesla, and Ashok Elluswamy, the vice president of AI software at Tesla who runs a joint venture with SpaceX called Digital Optimus.
Over the years, Musk has launched new startups within his empire, including brain-implant company Neuralink, underground-tunnel developer the Boring Company and xAI, the AI startup that merged with SpaceX in February.
It is that AI business that Musk thinks can serve a market worth tens of trillions of dollars, justifying the need for a merger.
The business case goes like this: Tesla is developing robotaxis and robots, which it calls “physical AI.” SpaceX is working on the back end of physical AI: the data-center capacity and internet connection required for those robotaxis and robots to operate continuously.
“I don’t see what the value of Tesla is if it’s not merged with SpaceX,” said investment adviser Ross Gerber, a former Tesla bull turned critic invested in both companies. “If they don’t merge, the brains of everything that runs Tesla is owned by another company.”
On top of it all, both companies face constraints on the supply chains they need to make this world a reality, particularly when it comes to chips. To address this, Musk earlier this year announced a joint venture between Tesla, SpaceX and Intel to design and manufacture chips in Texas. “The most epic chip-building exercise by far,” he has said.
Musk at the wheel
For Musk, a merger would also solve two problems: demands on his attention and his lack of control at Tesla.
Tesla for years was Musk’s only public company, a status that came with greater scrutiny. There, Musk reports to a public board, as well as individual investors who make up around 30% of Tesla’s voting power, according to FactSet.
The question of Musk’s attention became a particular focus for investors and the board in recent years after he acquired Twitter in 2022 and launched xAI in 2023, and again in 2025 as he spent time in Washington, D.C., running the Department of Government Efficiency in the early months of President Trump’s second term.
As Tesla’s car business suffered in 2025, Musk threatened to take his AI ambitions outside the company if he wasn’t granted 25% voting control. Last November, Tesla shareholders approved a new pay package for Musk, which created a path for him to vastly expand his stake.
As of Sept. 30, Musk owned a roughly 20% stake in Tesla, according to the company’s proxy filing.
The SpaceX IPO gave Musk a different path. When SpaceX went public in June, the deal’s structure enabled him to have more than 80% voting power at the company—so much that he can’t be fired and decisions can’t be made without his support.
If SpaceX acquires Tesla, he will likely stay in control.
Queensland-based builder-developer MAYD has unveiled an exclusive first look at its anticipated ultra-luxury North Kirra mixed-use project as it lodges a minor amendment with the City of Gold Coast Council. The project sits across a 4,742sqm amalgamated landholding spanning seven parcels at 2–6 Pacific Parade and 27–33 Golden Four Drive, Bilinga, which MAYD secured in …
Continue reading “MAYD”s North Kirra Plans Unveiled Ahead of Early 2027 Launch”
Mirzaian is a senior director within CBRE’s Development NSW business, operating across the company’s Western Sydney and North Sydney offices
