The European Union is working on a proposal for bloc-wide purchase incentives for electric vehicles to support the bloc’s struggling automakers, German Chancellor Olaf Scholz said.

Speaking at the World Economic Forum in Davos one day after U.S. President Donald Trump took office, Scholz said Europe’s response to a growing number of global challenges must be an economically stronger Europe with more competitive industry and less bureaucracy.

“What we need are pragmatic solutions, not ideological ones,” he said. “And that is why I am delighted that the president of the Commission has now taken up my proposal for harmonized Europe-wide purchase premiums for e-cars,” he added, referring to the European Commission’s Ursula von der Leyen.

With Europe’s car industry sagging in part because of low demand for EVs, Trump presented a new challenge by ordering his administration to consider eliminating subsidies and other policies aimed at accelerating the adoption of cleaner cars in the U.S.