Germany expands subsidies for electric cars and energy‑intensive industry

More than 50,000 German households have applied for the new electric‑vehicle purchase grant within the first three weeks of the programme, with 51,128 applications recorded since May 19. The majority target fully electric cars, and the subsidy – up to €6,000 per vehicle and adjusted for income and household size – is intended to make EVs affordable for lower‑income families. Environment Minister Carsten Schneider said the high demand shows that “electric cars are getting better, there are more charging stations and affordable models are now available.”

The European Commission has also approved a temporary measure allowing German energy‑intensive firms to draw on two support schemes simultaneously in 2026: a reduced electricity price for industry and compensation for indirect costs under the EU Emissions Trading System. The combined aid, expected to cost about €1 billion, aims to improve the sector’s competitiveness amid high energy prices. Economy Minister Katharina Reiche called the step “necessary given the enormously high energy prices caused by the current crisis,” while critics warn it is only a short‑term fix.