Brussels – Special loan schemes and subsidised loans for low-income families and citizens in economic difficulty but with a need to change their cars. This is the idea of the European Commission, which is inviting member states to develop social leasing models to enable those on the verge of poverty, over 71 million in the EU, to purchase an electric car. The unique initiative is contained in the action plan for the future of the car developed by the EU executive.
In Brussels’ idea, social leasing programs “can support clean and affordable mobility for less advantaged consumers, while giving a direct boost to sales of zero-emission vehicles.” To meet this goal, the EU executive pledges to adopt “in the first quarter of 2025,” and thus by the end of the month, a recommendation on transportation poverty. The document will not be binding, but aims to encourage national governments to launch social leasing programs for new and second-hand zero-emission vehicles.
However, the move, understandable as it is, will likely have a boomerang effect. The EU executive seems to lack tact in addressing the issue of poverty and economic hardship among certain sections of the EU population. The initiative for targeted loans and financing could be read as a form of handouts. The EU executive also seems to ignore that if one is in economic hardship, the priority might not be the car, but other expenses such as food, rent, or utility bills.
However, the Commission intends to move forward, convinced that the initiative is necessary. The recommendation urges member states to integrate these social leasing programs into their national transition plans, as part of the Social Climate Fund, to make sustainable transportation accessible to all.
English version by the Translation Service of Withub
