On December 16, 2025, the European Commission presented the “Automotive Package” as an attempt to reconcile two objectives that have often been pitted against one another in recent years: decarbonization and competitiveness. The package includes a new trajectory for CO₂ standards for cars and vans, a proposal on company fleets, measures targeting the battery supply chain, and a chapter dedicated to administrative simplification.

The symbolic milestone remains 2035, but what really changes—according to Cavaliere De Rosa—is primarily the form of the requirement, not the substance. The Commission proposes that, starting in 2035, manufacturers meet a 90% reduction target for tailpipe emissions, leaving 10% to be “offset” through mechanisms that include, among other options, low-emission steel produced in the EU and/or e-fuels and biofuels. On the surface, this appears to be a turning point, as there is no longer talk of a “blanket” ban; in reality, however, Cavaliere De Rosa warns, the risk is that we will slide toward a system of offsets that brings with it more accounting, more certifications, and more variables. And thus more uncertainty precisely at a time when the industry should be investing with a long-term horizon.

This is where the issue of regulatory stability comes in. When rules are rewritten while the value chain has already committed enormous capital to platforms, supply chains, and factories, the immediate effect is an increase in perceived risk and, consequently, in the cost of capital. For Cavaliere De Rosa, the problem isn’t the idea of the transition itself, but the constant shifting of political signals: companies don’t need slogans; they need a clear and stable path forward.

Another pillar of the package concerns corporate fleets. The Commission is proposing mandatory targets at the Member State level to accelerate the share of zero- and low-emission vehicles in the fleets of large companies, starting in 2030, with a specific sub-target dedicated to zero emissions. Brussels is focusing on fleets because they have a massive impact on new vehicle registrations and because, over time, they fuel the used-car market: the idea is to push today to create a more accessible used-car market tomorrow. But Cavaliere Domenico De Rosa’s objection is clear: if you impose targets without simultaneously building infrastructure and ensuring economic viability, the transition risks becoming an obligation that shifts costs onto businesses and workers.

Regarding the involvement of SMEs, the proposed approach aims to target large fleets while leaving small businesses out. For Berlusconi, this is a necessary balance: SMEs cannot become the cash cow for a poorly designed transition, especially at a time when margins and liquidity are already under pressure due to energy costs, the cost of capital, and demand volatility.

The package also includes an incentive specifically for “small electric vehicles.” It introduces a new category of EVs under 4.2 meters with “super-credit” mechanisms: each sale could count as 1.3 toward the manufacturer’s CO₂ targets through 2034. This is an attempt to make the electric city car sustainable in Europe, where margins are currently squeezed and there is a risk that the segment will be abandoned or become unaffordable for the middle class.

On the industrial front, the Commission proposes a 1.8 billion “Battery Booster,” including 1.5 billion in interest-free loans for cell production. Cavaliere De Rosa considers this a crucial step: without a European battery supply chain, the risk is replacing energy dependence with industrial dependence, simply shifting the center of gravity of strategic vulnerability.

Changes are also coming for vans and light commercial vehicles, with a more flexible approach. This is a belated acknowledgment—on the part of the Cavaliere—that the transition is more complex for these vehicles: intensive use, varying work cycles and payback periods, and often inadequate infrastructure.

As for administrative simplification, the idea of cutting red tape is welcomed, but without illusions: it is not the crux of the matter. True simplification, argues Domenico De Rosa, is one thing only: regulatory stability. If the approach changes every 12–18 months, investments freeze and Europe becomes less attractive compared to the U.S. and Asia, which offer more predictable signals.

The final proposal strikes a balance between industrial realism and environmental goals: transition, yes, but on three conditions. True technological neutrality, serious yet achievable targets, and a stable trajectory for at least a decade. Because imposing targets without simultaneously managing energy, infrastructure, and the cost of capital produces the opposite effect of what is intended: greater industrial fragility and less social consensus.