While Germany is hesitant to cut subsidies for electrical equipment, Sweden is taking a much more consistent step. The 2035 combustion engine ban makes subsidies for electric vehicles seem increasingly illogical anyway.

The Scandinavian countries, especially Sweden, like to surround themselves with the aura of social progress; Politicians and the media in other countries regard developments that start there as forward-looking. This also applies to mobility issues. Sweden is “a step ahead” when it comes to electric mobility, it says, and the “rapid growth” is praised. Electric cars have caught on so quickly in the country that the corresponding subsidies are now being canceled without replacement. The “climate bonus” previously granted to buyers of plug-in hybrids and fully electric vehicles can no longer be accessed for models ordered after November 8th.

And for good reasons: “Today, climate bonus cars make up around half of new car sales and are available in most price ranges,” the Swedish government reports, adding: “The purchase and driving costs of a climate bonus car are also included are now comparable to the purchase and driving costs of a petrol or diesel car.” Premiums are therefore no longer justified. In Germany, Economics Minister Robert Habeck is clearly hesitant – despite the ban on combustion engines, he has given in to the pressure from car manufacturers to be very hesitant about cutting subsidies for electric cars. From 2023 there will be fewer, but still lavish subsidies.

Other EU countries are likely to note the taxpayer-friendly new regulation in Sweden with interest – especially since the EU Commission has decided to phase out combustion technology by 2035 anyway, meaning that no further measures are required to establish the technology. The ambitious plan is to be reviewed again in 2026 – based on a demanding catalog of targets currently being defined by Internal Market Commissioner Thierry Breton. (Jens Meiers/cen)

This article was written by Jens Meiners, cen

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