Market & IndustrySmart
Europe’s car industry needs a strategy, not shields
Bruegel says the EU should back the auto transition with a clear plan, instead of relying on protection that only delays the real challenges.
22 September 2026 1 min read 5 views
Europe’s car industry is under pressure from weaker demand, Chinese competition and the cost of the electric transition. According to Bruegel, the EU should not answer with purely defensive measures, but with a strategy able to support the sector’s transformation.
The think tank says investment, stable rules and policies for batteries, software and the supply chain are needed. The goal is to strengthen competitiveness without turning Europe into a closed market, focusing on innovation and productivity.