With a contribution of 7% to European GDP, the automotive industry is “the engine of growth in Europe”, according to the Hungarian Presidency of the EU Council. On 10 July, the Commission published a background paper on support for the production and purchase of electric vehicles at European level. The day before, it hosted a working session on the same subject at the informal meeting of industry ministers.
Hungary puts forward eleven proposals in its document, as we had written in a previous article (see EUROPE 13449/1). The suggested measures include: - the deployment of electric recharging points; - support for vehicle manufacturers; - access to electric cars for consumers; - recycling; - promoting sustainable transport beyond private vehicles.
For Budapest, the electrification of the automotive fleet must be supported at European level, by stimulating both supply and demand. For example, Hungary is proposing that the EU should set up a subsidy programme for consumers, who could receive up to €4,500 in aid when they buy an electric vehicle.
What is more, European citizens will be more inclined to switch from internal combustion to electric vehicles if their regions are well equipped with recharging stations, and fast recharging at that, insist the authors of the document. This is why they are recommending the tightening of the Alternative Fuels Infrastructure Regulation (AFIR): it should require recharging stations for cars and vans every 50 km, instead of the current 60 km.
The deployment of this infrastructure could be supported by a European subsidy programme worth €15 billion up to 2035, according to the Hungarian Presidency. It is also proposing that an additional fund of €20 billion be created to help households equip themselves with home charging points.
On the automotive industry front, public funding could also be useful here, says Hungary. However, these could be national rather than European. For Budapest, a relaxation of State aid rules is therefore necessary.
The authors of the document once again stress the urgent need to reduce the administrative burden on automotive manufacturers.
As part of its drive to bring the automotive sector to the forefront of discussions on competitiveness, the Hungarian Presidency asked the European Commission to take stock of the situation in this sector in the EU, at the meeting of a working group on competitiveness and growth on Thursday 18 July.
To see the document: https://aeur.eu/f/d17 (Original version in French by Léa Marchal)