A definitive blow against electric cars? A European country reduces its investment in them by 4.6 billion euros

Giancarlo Giorgetti must be a very hated man right now by all those Italians who work in the automotive sector and, more specifically, in the automotive sector. electric cars.

It is the current Italian Minister of Economy and has just presented the proposal for Italy’s general budget for 2025, which includes a very unpleasant surprise for the electric car sector.

Italy will allocate 4.6 billion euros of aid for electric cars to “other sectors”

In 2022, Italy launched an ambitious aid plan for the automobile industry in this country that included significant support for the transition to electric cars. In this way, and Until 2030, it would allocate 8.7 billion euros to the sector.

More specifically, aid for the period 2025-2030 should reach 5.8 billion euros. But The Italian Government has just presented its budget for 2025 and, in them, the allocation of up to 4.6 billion euros has disappeared of this aid to electric cars, which will be reallocated to “finance other sectors.”

The text of the Law that would validate these budgets It must still be approved by the two legislative chambers of the transalpine countrywhich should take place in December. And, therefore, there is still time to introduce changes. But that does not mean that the automotive sector in Italy – read Stellantis as the main manufacturer – fears the worst.

And the fact is that, with this budget reduction, and as they point out from Automobile Prope if the aid planned for the sector was 762 million euros for 2025 and 1,000 million euros annually from 2026 to 2030; Now, aid will not exceed 200 million annually.

Of course, The Italian motor sector fears that this reduction in aid will negatively affect the transition to electric cars. in the transalpine country, something very necessary especially when, despite warnings from important manufacturers, the EU maintains the ban on marketing new vehicles with internal combustion engines from 2035.

The end of subsidies for the purchase of electric cars in Italy?

At the first alarm bells, The Italian Minister of Industry, Adolfo Urso, has tried to reassure the automotive sector pointing out thatand would ensure “that the automotive supply chain has the tools to meet the challenge of the green transition”. Likewise, Urso highlighted that “all resources will be dedicated to investment in production, with a focus on components, which are Italy’s true strength“.

But, if all the remaining aid is allocated to investment in production, many Italian media They are already assuming that, if these budgets go ahead, From 2025 there will be no funds left so that individual clients can benefit from aid when purchasing an electric car.