logo
How much debt is too much for a country?

How much debt is too much for a country?

Cast your mind back to July 2015. Greece had just moved from sovereign default to voting on a European bailout. It was a mess of Greece's own making. It was made worse by Keystone Cops-quality Greek leadership. And the fact that it didn't spread to other parts of Europe was due in no small part to good luck.
It's tempting to think of Greece and its debt crisis as being sui generis. A country with a fragile and deteriorating economy, two hopeless finance ministers in quick succession, and where paying tax is kind of voluntary.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Zelenskiy in Berlin for talks before Trump-Putin summit
Zelenskiy in Berlin for talks before Trump-Putin summit

The Advertiser

time8 minutes ago

  • The Advertiser

Zelenskiy in Berlin for talks before Trump-Putin summit

Ukrainian President Volodymyr Zelenskiy will join German Chancellor Friedrich Merz in Berlin for talks with European and US leaders before a Trump-Putin summit. Merz has convened a series of virtual meetings for Wednesday in an attempt to have the voice of European and Ukraine's leaders heard before the summit later this week in Alaska, where President Donald Trump and Russian President Vladimir Putin are expected to discuss a path towards ending Moscow's war in Ukraine. Zelenskiy and the leaders of European countries have been sidelined from that summit. Zelenskiy is due to meet with European leaders first, in preparation for a virtual call with Trump and Vice President JD Vance about an hour later. A call between leaders of countries involved in the "coalition of the willing" - those who are prepared to help police any future peace agreement between Moscow and Kyiv - will take place last. On Wednesday, Merz pledged to help Ukraine develop its own long-range missile systems that would be free of any Western-imposed limitations on their use and targets as the Kyiv government fights to repel Russia's invasion. The Ukrainian leader on Wednesday reiterated his doubt that Putin would negotiate in good faith to end the war. Writing on his official Telegram channel, Zelenskiy said there was "currently no sign that the Russians are preparing to end the war". He urged Ukraine's partners in the United States and Europe to coordinate efforts and "force Russia to peace". "Pressure must be applied on Russia for an honest peace. We must take the experience of Ukraine and our partners to prevent deception by Russia," Zelenskiy said. Trump has said he wants to see whether Putin is serious about ending the war, now in its fourth year, describing Friday's summit as "a feel-out meeting" where he can assess the Russian leader's intentions. Yet Trump has disappointed allies in Europe by saying Ukraine will have to give up some Russian-held territory. He has also said Russia must accept land swaps, although it was unclear what Putin might be expected to surrender. European allies have pushed for Ukraine's involvement in any peace talks, fearful that discussions that exclude Kyiv could otherwise favour Moscow. Trump on Monday ducked repeated chances to say that he would push for Zelenskiy to take part in his discussions with Putin, and was dismissive of Zelenskiy and his need to be part of an effort to seek peace. Trump said that following Friday's summit, a meeting between the Russian and Ukrainian leaders could be arranged, or that it could also be a meeting with "Putin and Zelenskiy and me". The Europeans and Ukraine are wary that Putin, who has waged the biggest land war in Europe since 1945 and used Russia's energy might to try to intimidate the European Union, might secure favourable concessions and set the outlines of a peace deal without them. The overarching fear of many European countries is that Putin will set his sights on one of them next if he wins in Ukraine. Zelenskiy said Putin wanted Ukraine to withdraw from the remaining 30 per cent of the Donetsk region that it still controls as part of a ceasefire deal, a proposal the leader categorically rejected. Zelenskiy reiterated that Ukraine would not give up any territory it controls, saying that would be unconstitutional and would serve only as a springboard for a future Russian invasion. He said diplomatic discussions led by the US focusing on ending the war have not addressed key Ukrainian demands, including security guarantees to prevent future Russian aggression and including Europe in negotiations. Ukrainian President Volodymyr Zelenskiy will join German Chancellor Friedrich Merz in Berlin for talks with European and US leaders before a Trump-Putin summit. Merz has convened a series of virtual meetings for Wednesday in an attempt to have the voice of European and Ukraine's leaders heard before the summit later this week in Alaska, where President Donald Trump and Russian President Vladimir Putin are expected to discuss a path towards ending Moscow's war in Ukraine. Zelenskiy and the leaders of European countries have been sidelined from that summit. Zelenskiy is due to meet with European leaders first, in preparation for a virtual call with Trump and Vice President JD Vance about an hour later. A call between leaders of countries involved in the "coalition of the willing" - those who are prepared to help police any future peace agreement between Moscow and Kyiv - will take place last. On Wednesday, Merz pledged to help Ukraine develop its own long-range missile systems that would be free of any Western-imposed limitations on their use and targets as the Kyiv government fights to repel Russia's invasion. The Ukrainian leader on Wednesday reiterated his doubt that Putin would negotiate in good faith to end the war. Writing on his official Telegram channel, Zelenskiy said there was "currently no sign that the Russians are preparing to end the war". He urged Ukraine's partners in the United States and Europe to coordinate efforts and "force Russia to peace". "Pressure must be applied on Russia for an honest peace. We must take the experience of Ukraine and our partners to prevent deception by Russia," Zelenskiy said. Trump has said he wants to see whether Putin is serious about ending the war, now in its fourth year, describing Friday's summit as "a feel-out meeting" where he can assess the Russian leader's intentions. Yet Trump has disappointed allies in Europe by saying Ukraine will have to give up some Russian-held territory. He has also said Russia must accept land swaps, although it was unclear what Putin might be expected to surrender. European allies have pushed for Ukraine's involvement in any peace talks, fearful that discussions that exclude Kyiv could otherwise favour Moscow. Trump on Monday ducked repeated chances to say that he would push for Zelenskiy to take part in his discussions with Putin, and was dismissive of Zelenskiy and his need to be part of an effort to seek peace. Trump said that following Friday's summit, a meeting between the Russian and Ukrainian leaders could be arranged, or that it could also be a meeting with "Putin and Zelenskiy and me". The Europeans and Ukraine are wary that Putin, who has waged the biggest land war in Europe since 1945 and used Russia's energy might to try to intimidate the European Union, might secure favourable concessions and set the outlines of a peace deal without them. The overarching fear of many European countries is that Putin will set his sights on one of them next if he wins in Ukraine. Zelenskiy said Putin wanted Ukraine to withdraw from the remaining 30 per cent of the Donetsk region that it still controls as part of a ceasefire deal, a proposal the leader categorically rejected. Zelenskiy reiterated that Ukraine would not give up any territory it controls, saying that would be unconstitutional and would serve only as a springboard for a future Russian invasion. He said diplomatic discussions led by the US focusing on ending the war have not addressed key Ukrainian demands, including security guarantees to prevent future Russian aggression and including Europe in negotiations. Ukrainian President Volodymyr Zelenskiy will join German Chancellor Friedrich Merz in Berlin for talks with European and US leaders before a Trump-Putin summit. Merz has convened a series of virtual meetings for Wednesday in an attempt to have the voice of European and Ukraine's leaders heard before the summit later this week in Alaska, where President Donald Trump and Russian President Vladimir Putin are expected to discuss a path towards ending Moscow's war in Ukraine. Zelenskiy and the leaders of European countries have been sidelined from that summit. Zelenskiy is due to meet with European leaders first, in preparation for a virtual call with Trump and Vice President JD Vance about an hour later. A call between leaders of countries involved in the "coalition of the willing" - those who are prepared to help police any future peace agreement between Moscow and Kyiv - will take place last. On Wednesday, Merz pledged to help Ukraine develop its own long-range missile systems that would be free of any Western-imposed limitations on their use and targets as the Kyiv government fights to repel Russia's invasion. The Ukrainian leader on Wednesday reiterated his doubt that Putin would negotiate in good faith to end the war. Writing on his official Telegram channel, Zelenskiy said there was "currently no sign that the Russians are preparing to end the war". He urged Ukraine's partners in the United States and Europe to coordinate efforts and "force Russia to peace". "Pressure must be applied on Russia for an honest peace. We must take the experience of Ukraine and our partners to prevent deception by Russia," Zelenskiy said. Trump has said he wants to see whether Putin is serious about ending the war, now in its fourth year, describing Friday's summit as "a feel-out meeting" where he can assess the Russian leader's intentions. Yet Trump has disappointed allies in Europe by saying Ukraine will have to give up some Russian-held territory. He has also said Russia must accept land swaps, although it was unclear what Putin might be expected to surrender. European allies have pushed for Ukraine's involvement in any peace talks, fearful that discussions that exclude Kyiv could otherwise favour Moscow. Trump on Monday ducked repeated chances to say that he would push for Zelenskiy to take part in his discussions with Putin, and was dismissive of Zelenskiy and his need to be part of an effort to seek peace. Trump said that following Friday's summit, a meeting between the Russian and Ukrainian leaders could be arranged, or that it could also be a meeting with "Putin and Zelenskiy and me". The Europeans and Ukraine are wary that Putin, who has waged the biggest land war in Europe since 1945 and used Russia's energy might to try to intimidate the European Union, might secure favourable concessions and set the outlines of a peace deal without them. The overarching fear of many European countries is that Putin will set his sights on one of them next if he wins in Ukraine. Zelenskiy said Putin wanted Ukraine to withdraw from the remaining 30 per cent of the Donetsk region that it still controls as part of a ceasefire deal, a proposal the leader categorically rejected. Zelenskiy reiterated that Ukraine would not give up any territory it controls, saying that would be unconstitutional and would serve only as a springboard for a future Russian invasion. He said diplomatic discussions led by the US focusing on ending the war have not addressed key Ukrainian demands, including security guarantees to prevent future Russian aggression and including Europe in negotiations. Ukrainian President Volodymyr Zelenskiy will join German Chancellor Friedrich Merz in Berlin for talks with European and US leaders before a Trump-Putin summit. Merz has convened a series of virtual meetings for Wednesday in an attempt to have the voice of European and Ukraine's leaders heard before the summit later this week in Alaska, where President Donald Trump and Russian President Vladimir Putin are expected to discuss a path towards ending Moscow's war in Ukraine. Zelenskiy and the leaders of European countries have been sidelined from that summit. Zelenskiy is due to meet with European leaders first, in preparation for a virtual call with Trump and Vice President JD Vance about an hour later. A call between leaders of countries involved in the "coalition of the willing" - those who are prepared to help police any future peace agreement between Moscow and Kyiv - will take place last. On Wednesday, Merz pledged to help Ukraine develop its own long-range missile systems that would be free of any Western-imposed limitations on their use and targets as the Kyiv government fights to repel Russia's invasion. The Ukrainian leader on Wednesday reiterated his doubt that Putin would negotiate in good faith to end the war. Writing on his official Telegram channel, Zelenskiy said there was "currently no sign that the Russians are preparing to end the war". He urged Ukraine's partners in the United States and Europe to coordinate efforts and "force Russia to peace". "Pressure must be applied on Russia for an honest peace. We must take the experience of Ukraine and our partners to prevent deception by Russia," Zelenskiy said. Trump has said he wants to see whether Putin is serious about ending the war, now in its fourth year, describing Friday's summit as "a feel-out meeting" where he can assess the Russian leader's intentions. Yet Trump has disappointed allies in Europe by saying Ukraine will have to give up some Russian-held territory. He has also said Russia must accept land swaps, although it was unclear what Putin might be expected to surrender. European allies have pushed for Ukraine's involvement in any peace talks, fearful that discussions that exclude Kyiv could otherwise favour Moscow. Trump on Monday ducked repeated chances to say that he would push for Zelenskiy to take part in his discussions with Putin, and was dismissive of Zelenskiy and his need to be part of an effort to seek peace. Trump said that following Friday's summit, a meeting between the Russian and Ukrainian leaders could be arranged, or that it could also be a meeting with "Putin and Zelenskiy and me". The Europeans and Ukraine are wary that Putin, who has waged the biggest land war in Europe since 1945 and used Russia's energy might to try to intimidate the European Union, might secure favourable concessions and set the outlines of a peace deal without them. The overarching fear of many European countries is that Putin will set his sights on one of them next if he wins in Ukraine. Zelenskiy said Putin wanted Ukraine to withdraw from the remaining 30 per cent of the Donetsk region that it still controls as part of a ceasefire deal, a proposal the leader categorically rejected. Zelenskiy reiterated that Ukraine would not give up any territory it controls, saying that would be unconstitutional and would serve only as a springboard for a future Russian invasion. He said diplomatic discussions led by the US focusing on ending the war have not addressed key Ukrainian demands, including security guarantees to prevent future Russian aggression and including Europe in negotiations.

Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry
Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry

The Advertiser

time39 minutes ago

  • The Advertiser

Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry

Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from: Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from: Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from: Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing "collapse" if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, "We need to do a reality check, otherwise, we will drive full throttle against the wall." He added that the European auto industry could "collapse" if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause "social consequences". Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the "crudest instrument" in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. "Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy," Mr Kaellenius said. "That's no use to our climate." The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. "Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever," Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a "coherent" design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs. MORE: Explore the Mercedes-Benz showroom MORE: Why Mercedes-Benz isn't worried about losing sales battle with BMW in Australia Content originally sourced from:

Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry
Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry

7NEWS

time2 hours ago

  • 7NEWS

Mercedes-Benz says 2035 ICE ban could ‘collapse' European auto industry

Mercedes-Benz CEO Ola Kallenius has told a German newspaper the European car industry is facing 'collapse' if the planned 2035 ban on the sale of new internal combustion engine-powered vehicles goes ahead. In the interview with Handelsblatt, the Mercedes-Benz boss spoke about the ICE ban, saying, 'We need to do a reality check, otherwise, we will drive full throttle against the wall.' He added that the European auto industry could 'collapse' if the 2035 ban on the sale of ICE-powered vehicles, which the European Union (EU) is due to review in the second half of this year, remains in place. Mr Kallenius is also the head of the European Automobile Manufacturers Association (ACEA), which has previously supported a 100 per cent reduction in carbon dioxide vehicle emissions, a 'de facto' ban on internal combustion engine sales, by 2035. CarExpert can save you thousands on a new car. Click here to get a great deal. It follows comments from Carlos Tavares, the previous CEO of Stellantis – owner of brands including Alfa Romeo, Maserati and Peugeot – who said the move would cause 'social consequences'. Australia doesn't have a national plan to ban sales of ICE vehicles, however the Australian Capital Territory (ACT) announced its own 2035 ban. The Mercedes-Benz boss, reports Handelsblatt, said a firm deadline on the sales ban of petrol and diesel internal combustion engines shouldn't be put in place. Mr Kallenius didn't call for more tariffs on imports, having previously suggested them as the 'crudest instrument' in dealing with increased competition from more affordable EVs, predominantly (but not only) from China, in Europe. Instead, he suggested greater incentives for consumers to buy electric vehicles (EVs) should be implemented, with cheaper electricity at charging stations, for example. 'Of course we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy,' Mr Kaellenius said. 'That's no use to our climate.' The comments came as the global auto industry faces headwinds from other factors, such as the impact of import tariffs into the US – the world's second-largest car market, and Mercedes-Benz's second biggest for passenger cars after China, too. 'Our industry is experiencing heavy rain, hail, storm and snow at the same time. Auto construction is a tough business, more than ever,' Mr Kallenius said. The Mercedes-Benz chief has admitted the automaker made mistakes in its approach to EVs, which saw it suspend sales of some electric models in the US due to slow sales. Mercedes-Benz sold 2.4 million vehicles in 2024, a fall of 4 per cent year-on-year, with a decline of 24 per cent for its EVs. In Australia, the brand is currently offering discounts of up to $70,000 on several electric models, and among its EVs only the EQB and EQE SUV have posted year-on-year increases so far in 2025. Mercedes-Benz is moving away from offering EVs with dramatically different styling and unique nameplates to its ICE models. EQ names are being phased out, and the brand is moving to a 'coherent' design language across its portfolio. Mercedes-Benz will launch a new mid-size electric SUV – the GLC with EQ Technology, which replaces the old EQC – at next month's IAA Mobility Show in the hometown of arch-rival BMW, which will reveal the rival BMW iX3 that will be the first of its 'Neue Klasse' generation of EVs.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store