Germany's SPD unveils plan to boost investment with 'Made in Germany' premium

[Martin Everson]

https://www.reuters.com/world/europ...estment-with-made-germany-premium-2024-12-15/

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The SPD, which governs Germany in a minority government with the Greens, said in its manifesto it plans to incentivise purchases of German-made electric cars with a temporary tax deduction offered to buyers.

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Is this even legal in EU as it sounds like unfair competition for other EU car manufacturers who may export to Germany 😕.

Sounds very desperate as German cars have just become too expensive.

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[SCHLOSSFINANZ]

against EU rules for sure

 

[ilke]

Martin Everson said:
Is this even legal in EU as it sounds like unfair competition for other EU car manufacturers who may export to Germany 😕.
Click to expand...

State aid is regulated (well, what isn't, lol) to prevent distortions in competition within the internal market. Any financial incentive that an EU government provides to specific companies or sectors must be notified to and approved by the European Commission.

I would assume this one contravenes Article 34 of the TFEU that prohibits quantitative restrictions on imports because of it favouring only German-made electric vehicles. Would only be legally correct if they did it for all EU-made electric vehicles, i.e., fought only against non-EU vehicles.

Still better than Die Linke's attempt to set up state funding for Döner Kebabs 🙂

Martin Everson said:
Sounds very desperate as German cars have just become too expensive.
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I think the primary problem is that they were not focused on innovation. They keep manufacturing the same cars, only a bit uglier and pricier with each release..

Meanwhile the Chinese were government-subsidising all of those electric cars, and now they outperform the European ones. Just look at EU stamp duty/import tax on Chinese EVs.

 

[JackAlabama]

Martin Everson said:
https://www.reuters.com/world/europ...estment-with-made-germany-premium-2024-12-15/

---- quote start

The SPD, which governs Germany in a minority government with the Greens, said in its manifesto it plans to incentivise purchases of German-made electric cars with a temporary tax deduction offered to buyers.

---- quote end

Is this even legal in EU as it sounds like unfair competition for other EU car manufacturers who may export to Germany 😕.

Sounds very desperate as German cars have just become too expensive.
Click to expand...

id say more signs the eu is disintegrating. That day cannot come soon enough.
They already suspended schengen basically (by introducing border checks).