Proposed Actions Intended to Combat Rising Unemployment Issue

In a joint letter to Ursula von der Leyen, President of the European Commission, Dr. Nicole Hoffmeister-Kraut, Minister of Economic Affairs, Labor, and Tourism of the state of Baden-Württemberg, and Hubert Aiwanger, Minister of Economic Affairs and Deputy Minister-President of the Free State of Bavaria, have expressed concern about a proposed mandatory electrification of service and rental cars by 2030.

The ministers, who have previously committed the states to the German automotive location and its jobs, believe that such an approach is necessary to manage the transformation and secure the German automotive location. Thousands of jobs in the European and German automotive locations are at stake.

Aiwanger, in particular, advocates for openness to various technologies, including synthetic fuels, hydrogen, and efficient hybrid solutions, in Europe. He calls for the EU to strengthen the innovative power of industry and facilitate investments in climate-friendly technologies, rather than hindering them through bureaucracy.

However, the proposed EU regulation on CO fleet targets for company car and rental car fleets, which would effectively amount to a mandate for electric vehicles, contradicts this endeavor. Aiwanger has not expressed support for this mandate.

Dr. Hoffmeister-Kraut, on the other hand, has successfully gotten the EU to accommodate manufacturers with imminent CO2 fleet limit penalties in the past. She has also demanded consistent action that takes into account technological openness, especially in view of the international competitive situation. This means not only that there should be no mandatory electrification of service and rental cars, but also that the contribution of plug-in hybrid vehicles to the current CO fleet targets for passenger cars must be reviewed immediately.

The ministers have also emphasised the importance of not restricting the financial scope of companies for investments in innovation and transformation. They welcome the additional flexibility granted at EU level in complying with the currently valid CO2 fleet limits.

Aiwanger has not stated any demand to restrict the financial scope of companies for investments in innovation and transformation. He is concerned about new regulations and bans potentially putting medium-sized businesses and jobs in the supply industry at risk.

The Economic Ministers Conference in June 2025, under the chairmanship of Dr. Hoffmeister-Kraut, reaffirmed the states' commitment to the German automotive location and its jobs. Both ministers have stated that it is of the utmost importance to stabilise and strengthen these locations.

As of 2025, no European countries have been publicly documented as having signed an open letter to EU Commission President Ursula von der Leyen opposing a planned mandatory electrification rule for company and rental cars by 2030 based on available information.

Dr. Hoffmeister-Kraut has advocated for this with the federal government and the European Commission. Aiwanger, while not discussing past successes, has joined her in expressing strong opposition to the proposed mandate.