German diesel compromise will only buy time

Significance

However, it failed to produce long-term solutions to a problem that not only affects the health of citizens and the rights of consumers, but also challenges the long-term national and global position of Germany's most vital industry.

Impacts

• More legislation and detailed implementation strategies of a new national mobility concept are likely to come after the September election.
• Changes in road tax categories and the overhaul of government subsidies may incentivise the purchase of low-emission vehicles.
• The delicate balance between EU emission targets, national regulation and municipal implementation will remain a political challenge.
• Publicly coordinated (and possibly funded) scrap schemes for old diesel cars and investments in e-mobility are likely in the medium term.