France, Germany reach auto sector compromise, easing 2035 climate targets
Published 2 d ago4 sourcesEvidence: Reported
France and Germany have reached a draft agreement on the future of the automotive industry, with each side winning concessions on separate issues. The compromise signals a potential easing of intra-EU tensions over industrial policy, though details remain undisclosed. This matters as it could shape EU-wide automotive regulations and competitiveness.
Entities
France and Germany have reached a bilateral agreement to significantly alter EU automotive policy, specifically easing the 2035 combustion engine ban and CO2 emission targets while strengthening 'Made in Europe' requirements. This deal, confirmed by multiple high-confidence sources, signals a strategic shift towards protecting European manufacturing against Chinese competition and potentially slowing the electric vehicle transition. Key uncertainties remain regarding the precise implementation details and formal EU-wide approval.
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