Source: ECF

While bicycle purchase incentives continue to expand in some European countries, political and financial instability is leading others to scale back or eliminate their programs.

Spain has introduced new subsidy schemes aimed at increasing bicycle use, whereas France has abruptly ended its support due to budget cuts. Meanwhile, Poland’s planned national program has been put on hold due to funding challenges.

Expansion of bicycle subsidies in Spain

In September 2024, Spanish Prime Minister Pedro Sánchez announced a €20 million subsidy program for electric bicycles, benefiting both individuals and businesses. An additional €20 million will be allocated to public bike-sharing systems, with the goal of expanding access and reducing costs. Sánchez emphasized that the initiative aims “to increase the modal share of cycling in daily commuting and to have more bikes in more cities, for more people.”

Support for cycling incentives in Spain extends beyond the national government. The Madrid region, for example, has introduced a targeted subsidy program specifically for elderly citizens and small and medium-sized enterprises. Notably, the national and regional governments are led by opposing political parties, highlighting that cycling promotion can transcend political divisions.

France ends bicycle subsidies amid budget cuts

In contrast, France has opted to discontinue its bicycle subsidy programs. A government decree issued in late November 2024 announced that all state-funded bicycle purchase incentives would be withdrawn by February 2025, despite previous commitments extending support until 2027. The decision follows political turmoil and urgent budgetary restrictions.

Cycling advocates have strongly criticized the move, warning of its negative impact on both the industry and vulnerable users. Thibault Quéré, Director of the French Federation of Bicycle Users (FUB), describes the decision: “This is a blow to a dynamic that was well underway and had found its audience. All the more so as the subsidies targeted the most vulnerable households and the range of bicycles was adapted and advantageous for people with disabilities. ”

Poland’s plans on hold due to funding challenges

Poland had also planned to launch a national electric bicycle subsidy program from 2025 to 2029, with a total budget of PLN 300 million (approximately €70 million). However, the initiative was put on hold in the autumn of 2024 after the European Investment Bank declined to finance it through the Modernisation Fund, citing energy efficiency investment priorities. Advocates hope that alternative funding sources will be identified to enable the program’s implementation.

Future prospects for bicycle subsidies in the EU

Despite setbacks in some countries, bicycle purchase incentives remain a crucial tool for promoting cycling as a sustainable alternative to car travel. Electric and cargo bicycles, in particular, have been recognized for their potential to replace car trips, facilitate urban mobility, and make cycling more accessible to a broader demographic, including older adults and families.

Looking ahead, the drafting of national plans under the EU Social Climate Fund in early 2025 presents an opportunity for member states to allocate funding for bicycle purchase and leasing programs, particularly for vulnerable transport users. As the debate over sustainable transport policies continues, the future of bicycle subsidies in Europe remains uncertain, shaped by both political decisions and economic constraints.