Germany’s ruling coalition confirmed it will extend a tax exemption for new electric vehicles as part of a broader effort to support the nation’s key car industry in the transition to more climate-friendly technologies.

Finance Minister Lars Klingbeil will present a draft law soon that will keep the existing tax exemption for EVs in place until 2035, Maximilian Kall, a finance ministry spokesman, said Monday at a regular government news conference in Berlin, confirming a report by DPA.

“To get significantly more electric cars on the road in the coming years, we need to set the right incentives now,” Klingbeil, a Social Democrat who is also the vice chancellor, told the news agency.

The coalition accord agreed on by Chancellor Friedrich Merz’s conservatives and Klingbeil’s SPD included t

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