Bruegel: Europe risks weakening its own car industry

European automotive policy risks trapping manufacturers between increasingly costly decarbonisation obligations and insufficient public support. This is the assessment of Bruegel, which argues that this combination is weakening the competitiveness of the continent’s industry.

During the shift to electric vehicles, European brands must also deal with pressure from Chinese manufacturers and incentives introduced by other industrial powers. Bruegel believes a more coherent strategy is needed, combining environmental targets with investment, infrastructure and measures to protect the supply chain.