Market & IndustrySmart
EU car industry needs strategy, not barriers
Bruegel says Brussels should back the auto transition with a clear plan, not protectionist measures that could hurt competitiveness.
22 September 2026 1 min read 9 views
Europe’s car industry is facing a delicate phase: amid electrification, Chinese competition and high costs, Bruegel argues that trade barriers are not enough. What is needed is a strategy that helps companies and workers through the shift, with investment, skills and infrastructure.
For the think tank, Europe should strengthen its supply chain without giving up competition. Excessive protection of the domestic market may offer only short-term relief, but in the long run it could weaken innovation and the industry’s ability to respond globally.