Germany, France Agree to Soften EU Combustion Engine Ban, Tighten 'Made in EU' Rules

Germany and France reached a bilateral agreement to soften the EU's planned 2035 combustion engine ban, a reversal of the Commission's earlier position, while France secured stricter 'Made in EU' content requirements. The deal signals a shift in EU industrial policy toward national interests, potentially complicating the bloc's climate goals and trade posture. Implementation details remain uncertain, pending formal EU approval.