Cyprus’s EU Council Presidency from January 1, 2026, braces for headaches over the Commission’s December 16, 2025, reversal of the 2035 internal combustion engine ban, per Politico. Lacking its own auto industry, Nicosia must broker compromise between rival camps: France and Germany.
The new package sets national zero-emission targets for corporate fleets, vehicles owned or leased by businesses. Berlin and EPP hailed it; greens and left warned of Chinese competition boost.
Six-month mediation challenge
Cyprus holds six months to forge member-state consensus. A presidency spokesperson pledged an “honest broker” role for a text backed by as many states as possible.
Challenges loom large. Paris deems post-2035 pure thermal engine sales a red line. Berlin seeks further easing for hybrids and high-efficiency combustion. Cyprus voted for the original 2023 ban, but dynamics shifted amid populist far-right attacks on climate laws.
Shifting alliances and demands
Central Europe resists bans; Bulgaria, Czechia, Italy, Poland, Slovakia demand hybrid, alternative fuel, plug-in exemptions. France, under domestic pressure, pushes flexibilities for “European-made” production quotas alongside Spain. Italy promotes biofuels, criticized as costly and unrealistic at scale.
Cyprus must balance auto industry rescue (9% EU GDP), US trade wars, Chinese rivalry, and EU goals: 90% transport emissions cut by 2050, climate neutrality.
Historic clash for Nicosia
The Commission frames cars-vs-climate as “historic battle” for Cypriot diplomacy, defining the presidency agenda despite non-national priority.
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