France and Germany agree trade-off on EU car sourcing and emissions rules
Berlin would support tighter European-content requirements, while Paris would back a softer 2035 emissions target for new vehicles.
France and Germany announced on 16 October that they had resolved differences over two EU automotive proposals, linking support for European production to looser emissions requirements. Their agreement concerns local-content provisions in the proposed Industrial Accelerator Act and the bloc’s 2035 vehicle emissions target.
Germany would agree to tougher requirements favouring European-made cars, a French priority. In return, France would support Germany’s effort to ease the planned phase-out of new combustion-engine vehicles. The two governments want a 90 per cent emissions-reduction target for 2035, without requiring investment in alternative fuels to compensate for the remaining 10 per cent, as the European Commission has proposed.
The announcement followed a delay caused by disagreements inside Chancellor Friedrich Merz’s governing coalition. Germany’s Social Democratic Party, the junior coalition partner, withdrew its objections. Environment Minister Carsten Schneider, a Social Democrat, said companies were expected to use the changes to invest and protect jobs in Germany.
An Elysée official said the automotive sourcing provisions could also cover the United Kingdom and Switzerland under certain conditions. French President Emmanuel Macron expressed hope that the bilateral agreement would help secure a deal with other partners.
