Germany, France Agree on EU Auto Policy Reform
Published 1 d ago3 sourcesEvidence: Reported
German Chancellor Merz and French President Macron have reportedly agreed to reform EU automotive policy, easing the bloc's 2035 ban on internal combustion engines. The deal signals a policy reversal from the previous EU position, potentially reshaping the regulatory landscape for automakers. The specifics of the reform remain unclear, but the agreement between the EU's two largest economies could accelerate a shift in EU-wide policy.
Entities
France and Germany have reached a bilateral agreement to significantly revise EU automotive policy, easing the 2035 combustion engine ban and relaxing CO₂ emission targets while simultaneously pushing for stricter 'Made in Europe' manufacturing requirements. This signals a coordinated Franco-German effort to balance climate objectives with industrial protectionism, potentially slowing decarbonization efforts but bolstering domestic manufacturing against Chinese competition. The specifics of the revised regulations and their formal EU adoption remain unclear.
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