Czech Republic & Central Europe — 2026-03-18
Czech Republic Formally Rejects EU Combustion Engine Phase-Out Despite Softened Proposal
The Czech government formally rejected EU plans to phase out new combustion engine sales by 2035. The position reflects the automotive sector's reliance on traditional powertrains (180,000 jobs, 9% of GDP) and the Babis coalition's skepticism of rapid green transition mandates.
Analysis
Prior digest tracked Czech push to suspend the EU Emissions Trading System ahead of the March 19-20 summit. The combustion engine rejection and ETS suspension push form a coherent pattern of the Babis government positioning against EU climate policy across multiple fronts.
Prior digest tracked Czech push to suspend the EU Emissions Trading System ahead of the March 19-20 summit. The combustion engine rejection and ETS suspension push form a coherent pattern of the Babis government positioning against EU climate policy across multiple fronts.