A coalition of nine European Union member states has formally opposed a European Commission proposal that would impose mandatory quotas for electric and low-emission vehicles on large corporate fleets, according to a document obtained by Euronews. The group, led by Poland and including Bulgaria, the Czech Republic, Estonia, Hungary, Italy, Latvia, Slovakia and Romania, argues that while they support fleet decarbonisation in principle, the Commission's approach risks harming competitiveness and placing undue burdens on businesses.
The proposal, set to be discussed at a meeting of EU transport ministers in Luxembourg on Monday, would require companies with more than 250 employees or a turnover exceeding €50 million to ensure that by 2030 roughly 69 percent of newly purchased vehicles are plug-in hybrids and around 45 percent are battery-electric or hydrogen-powered. The precise targets would vary by member state.
Incentives Over Mandates
The nine governments acknowledge that corporate fleets can significantly accelerate the shift to cleaner vehicles and reduce Europe's dependence on imported oil, which accounts for nearly 60 percent of the bloc's imports. However, they argue that mandatory quotas are not the right tool. "Priority should be given to an enabling EU framework based on guidelines, exchange of best practices, targeted incentives, and technical support, rather than the proposed regulation," the document states.
This stance echoes broader debates across the continent about the pace and method of decarbonisation. In a related development, seven EU states have urged Brussels to hold firm on car CO2 targets, highlighting the internal divisions within the bloc over climate policy.
A recent analysis by the campaign group Transport & Environment (T&E) found that in 18 of the 27 EU countries, the tax gap between electric and fossil-fuel cars is insufficient to offset higher EV prices. Stef Cornelis, T&E's fleets and freight director, said: "The EU fleets regulation is the catalyst needed to break this inertia. The EU Council and EU Parliament should inject more ambition into the Commission’s proposal to ensure Europe can reduce oil imports rapidly." T&E notes that cars and vans linked to corporate businesses account for 59 percent of new car registrations and 78 percent of oil imports consumed.
Uneven Readiness Across Europe
A major concern among the nine governments is the uneven readiness of EU countries for electrification. They point to significant differences in charging infrastructure, leasing markets, taxation systems, grid capacity and administrative frameworks. A one-size-fits-all target, they argue, risks penalising countries where the supporting ecosystem for electrification remains underdeveloped. "The preparation of Commission guidelines, combined with a structured exchange of best practices, could enable member states to tailor implementation to their specific circumstances," the document reads.
This unevenness is particularly acute in Central and Eastern Europe. For instance, Lithuania's shelter shortage exposed after a drone alert lockout underscores broader infrastructure gaps that could complicate rapid electrification. Similarly, the Baltic states face challenges in defence and energy security, as highlighted by radar shortages amid drone threats, which further strain resources.
Avoiding Collateral Damage to SMEs
Although the Commission's proposal formally targets large companies, the nine governments argue that the burden could cascade through leasing and rental markets. Many small and medium-sized enterprises (SMEs) rely on leasing rather than direct vehicle purchases. Fleet obligations imposed on leasing companies could effectively be imposed on SMEs. "Covering leasing companies with targets, without exceptions for certain groups of their clients, would lead in practice to exposing SMEs to these targets," the document notes, adding that around 80 percent of cars acquired by SMEs are not purchased vehicles.
The dissenting capitals also insist that special-purpose vehicles and fleets linked to critical infrastructure, emergency response and public preparedness require greater flexibility than the Commission proposal currently provides. Operational readiness, they argue, must not become collateral damage in the pursuit of climate targets.
The debate comes as France's green fund cuts spark accusations of climate denial after a record heatwave, illustrating the political tensions surrounding environmental policy across Europe. The outcome of Monday's meeting could shape the final shape of the regulation, which still requires approval from the European Parliament and the Council.
