BRUSSELS (dpa-AFX) - The President of the European Automobile Association Acea, Luca de Meo, has warned of the consequences of possible EU climate penalties for car manufacturers. These billion-euro fines are another example of how Europe is "shooting itself in the foot", he said in Brussels. The money - de Meo spoke of several billion - could not be invested in innovation.

"We can all see that the challenges facing Europe are even greater than we expected," said the head of the lobby association. He cited the rise of the Chinese electric car industry and the fact that protectionism is back in fashion as examples. When asked about the role of e-fuels in the future, de Meo said that this was not as pressing an issue as the challenges in the coming year.

Penalties for emitting too much CO2

Under current EU legislation, car manufacturers face fines if they exceed the so-called fleet limits for CO2 emissions. The limits are set to become stricter in 2025. Manufacturers will have to pay a fine for emitting too much CO2.

During talks with members of the new EU Commission in Brussels, Federal Economics Minister Robert Habeck said that the fleet limit targets should be maintained. However, he reiterated his position that fines should be spread out and, if necessary, offset against overfulfillment of the quotas in subsequent years.

"I think that's fine if you don't take billions more out of the companies in this difficult situation for the automotive industry," said the Green politician. This should rather be invested in the ramp-up of e-mobility, for example./mjm/DP/jha