As we previously reported, the German government is currently in the final stages of establishing a new plan to boost the electric vehicle market in the country. The plan is rumored to include tax breaks for the development of EV technologies, investments in charging infrastructures and finally a much-anticipated €5,000 discount at the purchase of an electric vehicle.

The government is reportedly in negotiations with the German auto industry to figure out the financing of the initiative, but apparently the industry is only willing to pay for about a third of what the government is asking.

Citing sources familiar with matter, German publication Handelsblatt reports that Chancellor Merkel will get involved in the negotiations this week:

Chancellor Angela Merkel will discuss a proposal along these lines with the chief executives of BMW, Mercedes-maker Daimler and Volkswagen at a meeting on Tuesday, according to the sources.

The government expects the industry to contribute €600 million to the plan:

The plan aims to make €100 million available to fund small tax breaks, €300 million for the expansion of rapid charging stations and €600 million in subsidies to encourage people to buy electric cars. Under the plan, carmakers are expected to contribute €600 million to the plan, although they have so far only offered €200 million to €250 million, according to the sources.

The latest report suggested that the €5,000 incentive should be available to EV buyers as soon as July, which adds some urgency to the current timeline of the negotiations. Last year, Germany joined the International Zero-Emission Vehicle Alliance, which aims at making all passenger vehicles emission-free by 2050.

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