The Intelligence from The Economist Emissions possible: EU petrol ban quashed
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Dec 17, 2025 
Tom Lee Devlin, The Economist's business editor, shares insights on the EU's recent decision to dilute its 2035 petrol and diesel vehicle ban, highlighting concerns for automakers amid rising competition from Chinese EVs. He discusses the barriers hindering EV adoption, including costs and infrastructure. Meanwhile, Henry Kerr, the economics editor, explores potential nominees for the Federal Reserve chair, examining the political pressures that threaten the institution's independence. They also reveal the winning word of the year, 'slop,' and its cultural significance.
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EU Softens 2035 Petrol Ban
- The EU replaced an outright 2035 ban with a 90% tailpipe emissions cut target relative to 2021 levels and eased interim and commercial-vehicle rules.
- Tom Lee Devlin warns this is a reversal that still leaves petrol sales possible in 2035 and weakens climate ambition.
EV Uptake Has Lagged Expectations
- EV adoption in Europe has been slower than expected, reaching about 20% of sales this year and projected at ~75% by 2035 on current trends.
- This gap helps explain policymakers' willingness to water down the original ban, says Tom Lee Devlin.
Policy And Cost Drive EV Demand
- Higher upfront costs, limited small EV models, weak charging infrastructure and volatile subsidies have hindered European EV sales.
- Germany's removal of purchase incentives and U.S. policy shifts under Trump illustrate how government support materially affects uptake.