EU transport ministers on 8 June 2026 debated the proposed regulation on clean corporate vehicles, with the Cypriot Presidency highlighting deep divisions over binding national targets for zero- and low-emission vehicles registered by large undertakings. European Commissioner for Transport Apostolos Tzitzikostas linked the file to the wider automotive package, including CO2 standards and the Industrial Accelerator Act, and expressed hope for a compromise after summer.
Key disputes emerged along several axes. On binding targets vs incentive-based approaches, Poland, Lithuania, Czechia, Estonia, Slovakia, Bulgaria, Sweden, Romania, and Italy favoured non-regulatory tools, while France, Croatia, and the Netherlands supported binding targets. Germany opposed Article 4 on fiscal competence, and Luxembourg rejected tax incentives, reflecting a tension between EU ambition and national flexibility. Many delegations warned of administrative costs, pitting decarbonisation against competitiveness and SME burdens. Germany and Italy advocated for biofuels and transitional technologies, challenging the electrification focus with a call for technology neutrality. France and Hungary supported 'made in the EU' provisions, but Greece questioned their workability. Poland, Greece, and others cited uneven infrastructure readiness as a barrier to uniform targets.
Consensus emerged on decarbonisation goals, the need to assess the file alongside related legislation, avoiding SME burdens, and further work under the incoming Irish Presidency. The Council took note of the progress report, with no decision taken. The debate exposed a substantial divide between member states favouring binding EU-level targets and those prioritising national flexibility, with implications for automotive industry compliance costs, fleet modernisation pace, and the EU's industrial competitiveness. The incoming Irish Presidency will face the challenge of bridging these positions to advance the file.