Franco-German pact on car emissions and Made in Europe rules stalls
Opposition from Germany’s Social Democratic Party held up a draft linking looser vehicle emissions targets to tighter automotive eligibility rules.
France and Germany failed to finalise a joint position on vehicle emissions and proposed EU manufacturing rules on 15 October 2026, after Germany’s Social Democratic Party objected to environmental concessions. A German government spokesperson confirmed that agreement remained outstanding.
The draft would trade German backing for France’s preferred restrictions on automotive eligibility under the Industrial Accelerator Act for French acceptance of softer emissions requirements. The Social Democrats, the junior partner in Germany’s governing coalition, raised concerns about the removal of key environmental targets.
The proposed package would lower the 2035 emissions-reduction target from 100 per cent against 2021 levels to 90 per cent. It would also allow a further 10 per cent of leeway linked to investment in alternative fuels. A requirement for investment in green steel would be removed.
For plug-in hybrids, the draft favours laboratory results over real-world data when calculating how much vehicles use their electric motors rather than combustion engines. The European Commission requires the calculation to use real-world data.
The automotive provisions on Made in Europe eligibility would cover the EU’s 27 member countries, with the United Kingdom included subject to conditions. EU industry chief Stéphane Séjourné said he supported the compromise and that the UK currently qualified. The British government welcomed the prospect of inclusion while noting that the European process was still to come.
Even if Paris and Berlin reach agreement, the package would need approval from other EU countries and the European Parliament. Both are discussing the Industrial Accelerator Act and the automotive package, including manufacturers’ emissions targets.
