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It definitely looks like it is wishful thinking for diesel engines to meet those standards and be cost-competitive with gasoline-fueled alternativesThe technology that would have brought "Dieselgate" diesels into compliance with EU emissions rules was said to cost manufacturers something on the order of US$100 per vehicle: Selective catalytic reduction (SCR) with a refillable AdBlue (urea) tank.
However, prior to Dieselgate there is alleged to have been collusion between the major German automakers and a secret agreement not to install it on small vehicles.
This collusion, rather than the emissions cheating itself, is the focus of ongoing criminal investigations in Germany. (Cheating on emissions tests itself was not actually illegal in Europe, because the legislation was created with loopholes).
As of 2019, AdBlue is becoming common on new small diesel vehicles in Europe.