Germany Chancellor Angela Merkel Opposed CO2 Rule to Protect Auto Jobs image

German Chancellor Angela Merkel said that the nation opposed the EU’s CO2 emissions regulations due to concerns that the measure will lead to job losses in the auto industry.

“With such an important policy decision, it’s important that prudence trumps speed, ” German auto-industry lobby VDA said in a statement. “Therefore, it’s correct that sufficient time to review compromise suggestions are allowed.”

Germany managed to attract other states and form a coalition to oppose the approval of the CO2 emissions rule, which was set for yesterday, June 27th. Merkel said that she chose to delay the proposal of the new CO2 emissions regulation to defend jobs in Germany.

“This is also about employment,” Merkel told reporters in Brussels today after a European Union summit. “That’s why we need time to review and evaluate and decide what we will do. That’s why the vote didn’t happen.”

The current EU law requires automakers to cut CO2 emissions to 130 g/km on average in 2015, while the new regulation, which still needs approval, requires 95 g/km by 2020. Ford has already expressed its disappointment regarding this issue saying that a minority member states was able to “delay a well-balanced agreement.”

Source: Bloomberg