In the face of declining auto sales across Europe, Angela Merkel has stood up for most auto manufacturers and blocked a bill aimed at capping carbon emissions by 2020 to 95 grams per kilometer. Germany was not alone, as a coalition of European countries felt that a proposal of this magnitude in the face of economic headwinds was simply too detrimental to an already struggling EU economy.
“This is also about employment,” Merkel said today, “That’s why we need time to review and evaluate and decide what we will do. That’s why the vote didn’t happen.”
German auto-industry lobby VDA lauded Merkel’s decision, saying, “With such an important policy decision, it’s important that prudence trumps speed. Therefore, it’s correct that sufficient time to review compromise suggestions are allowed.”
The EU efforts would target certain manufacturers with certain goals, including General Motors Co (NYSE:GM). The American auto giant has recently stepped up its Chevrolet brand in Europe in an attempt to reconcile its failure to gain the notoriety of the Adam Opel brand.