Urgent Reforms Needed for European Automotive Industry, Warns Minister Urso

Adolfo Urso, Italy's Minister of Enterprises and Made in Italy, has issued a stark warning during the National Automotive Industry Roundtable held at Palazzo Piacentini: 2026 must be the year for European reforms, or the ecological transition of the automotive sector risks devolving into deindustrialization.

The Green Deal at the Heart of the Crisis

Urso did not hold back in his criticism, stating, "The epicenter of the crisis is in Brussels with the follies of the Green Deal." He argues that the European policies aimed at forced decarbonization have severely undermined the European automotive industry, inadvertently favoring Chinese technology and production. His assessment is underscored by the current struggles faced not only by Volkswagen but also by major manufacturers across the continent, raising the threat of a comprehensive industrial collapse.

Today’s realities affirm Urso's previous criticisms of the ideological framework of the automotive Green Deal, emphasizing that the situation has validated his concerns.

Technological Neutrality and the Industrial Accelerator Act

Urso highlighted two urgent priorities for addressing the crisis. The first is the full recognition of technological neutrality: Europe should not enforce a singular electric technology as the sole solution for decarbonizing transport. Instead, it must allow for all viable alternatives, including synthetic fuels and advanced hybrids.

Secondly, he called for the acceleration of the Industrial Accelerator Act. Waiting until 2029 to implement Made in Europe and Low Carbon requirements in EU regulations would only serve to cede more market share to non-European manufacturers, particularly those from China, who already enjoy unmatched production costs.

Stellantis Plan as a Model

On the national front, Urso expressed support for the evolution of the Stellantis Plan, assuring that the government would closely monitor its implementation and adherence to commitments made.

The figures involved are significant: 5 billion euros allocated for new technologies, platforms, and models that align more closely with market demands, alongside 7 billion euros in contracts annually for the component supply chain. According to Urso, these investments are crucial for safeguarding all Italian manufacturing plants, protecting jobs, and revitalizing the industrial sector.

This achievement is particularly noteworthy when compared to the situation in Germany, where leading manufacturers are grappling with painful restructuring, plant closures, and substantial job cuts.

Frequently Asked Questions about the European Automotive Sector and the Green Deal

What did Urso say at the National Automotive Roundtable?

Minister Adolfo Urso called for urgent European reforms in the automotive sector, identifying the Green Deal as the primary cause of the crisis in the European automotive industry. He advocated for technological neutrality and the advancement of the Industrial Accelerator Act ahead of 2029.

What is the Industrial Accelerator Act?

This is a European regulation designed to enhance the continent's industrial competitiveness. Urso is urging for its early application to introduce the Made in Europe and Low Carbon criteria immediately, rather than waiting until 2029.

What is Stellantis's plan for Italy?

The plan includes an investment of 5 billion euros in new technologies and market-aligned models, plus 7 billion euros each year in contracts for the component supply chain, aimed at keeping all facilities operational and protecting jobs.

Why is the automotive crisis hitting Germany harder?

Germany, home to Volkswagen, BMW, and Mercedes, is particularly vulnerable to Chinese competition in the electric vehicle segment. German manufacturers have initiated significant restructuring efforts, resulting in more extensive plant closures and job reductions compared to Italy.