European regions and cities demand clear rules and solid financial backing to help Europe’s ailing car industry through the shift to electric vehicles (EVs). The European Committee of the Regions (CoR) on Wednesday adopted an opinion on the European Commission’s Automotive Package, arguing that the transition will only succeed if regions are adequately equipped to carry it.

Regions said electrification is crucial to achieving climate-neutral road transport, but that success depends on affordability and access. They called for charging infrastructure across regions, funded by European, national and regional budgets, as well as targeted demand support in lower-income regions.

“Europe’s regions and cities have spoken with one voice: competitiveness and electrification by 2035 go hand in hand,” said María Chivite, President of the Navarre region in Spain, who drafted the opinion. Europe can only lead the transition, she argued, if regions receive “real financing”.

The Commission proposed the Automotive Package in December. It suggests a 90-percent-cut in tailpipe emissions from 2035, with the remaining 10 percent offset through low-carbon steel or e-fuels and biofuels. The CoR welcomed these temporary flexibilities but warned that they must not delay zero-emission mobility.

Brigitte Torloting, Chair of the Automotive Regions Alliance (ARA) and Vice-President of France’s Grand Est region, warned that time is short and “global competition will not wait for us”. She called for a strategy that protects automotive production in the regions, backed by strong European instruments such as “European preference.” Without a clear framework and targeted investment, she said, Europe risks losing its industrial base, from small and medium-sized enterprises (SMEs) to major suppliers.

Made in the EU

“European preference” is an approach first introduced in the Commission’s proposal for an Industrial Accelerator Act in March and is designed to prioritise EU-based manufacturing. The Commission suggests public procurement contracts and state-subsidised industrial projects to source a minimum percentage of materials or components from European producers. For EV production, the Commission proposed that 70% of components for new cars – excluding the battery – must originate within the EU.

CoR members also welcomed the “Made in the EU” approach to strenghten European production but insisted it must be proportionate, so that SMEs and regional supply chains are not buried in red tape.

With automotive production concentrated in specific territories, the opinion also calls for targeted cohesion funding, skills and quality jobs.

According to EU figures for 2024, the automotive industry contributed 7 percent of EU gross domestic product (GDP), about EUR 170 billion in exports and supported around 13.8 million jobs, 3.5 million of them in manufacturing. According to CoR figures, the 41 regions organised in the Automotive Regions Alliance (ARA) generate more than 40 percent of EU GDP.

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr. 

Press contact:

Theresa Sostmann
Tel. +32475999415

Theresa.Sostmann@cor.europa.eu

Is artificial intelligence growing more rapidly than humanity’s ability to contain it? The EU’s tech chief had a stark warning for the development of AI systems: if we don’t put guardrails in place now, the technology might soon be beyond our control.

In an interview with the European Newsroom (enr), European Commission Executive Vice-President Henna Virkkunen (Tech Sovereignty, Security and Democracy) said AI systems are becoming more capable and harder to evaluate.

The Finnish politician called for the establishment of international rules, which she said were already being discussed among G7 and G20 countries. She told journalists she was convinced that countries which are currently unwilling to regulate the sector will eventually come around.

China and the United States are currently leading in AI development but are showing no signs of slowing down despite recent warnings from industry insiders. Meanwhile, the EU has already begun to enforce its landmark AI Act.

Virkkunen also spoke about the addictive nature of social media networks and the impact they have on European children, calling on platforms to take greater responsibility. The Commission last month proposed a new law that seeks to limit the use of social media, including restrictions on gaming, for kids under 15.

The interview was conducted by enr news agencies dpa (Germany) and PAP (Poland) on behalf of the enr network.

Read some of our coverage here:

• European Newsroom (enr) – EU tech chief expects countries leading AI race to come around on safety
• dpa (Germany) – EU demands response from Claude, OpenAI on cyberattacks
• PAP (Poland) – Virkkunen: Social media is becoming increasingly addictive; clear age limits are needed
• Tanjug (Serbia) – EU tech chief expects countries leading AI race to come around on safety