France and Germany reportedly agree to ease EU 2035 car emissions rules

Centre · 2France and Germany reached a provisional deal on Thursday 15 October 2026 on EU automotive policy, backing looser emissions rules for carmakers alongside a "made in Europe" scheme. 1 2 Centre · 2France 24 said diplomatic sources confirmed the deal to AFP and that it is provisional pending final sign-off from Berlin; Anadolu Agency relied on media reports, citing the Handelsblatt newspaper, that Chancellor Friedrich Merz and President Emmanuel Macron had agreed it. 1 2 Centre · 1The European Commission had proposed replacing the 2035 ban on new petrol and diesel sales with a requirement to cut new vehicle exhaust emissions by 90 percent, with the remaining 10 percent compensated through credits, including from low-carbon steel. 1

Centre · 2The Franco-German deal keeps the 90 percent target but drops the requirement to offset the remaining 10 percent, so manufacturers could keep selling petrol or diesel vehicles after 2035 if emissions stay within the limit. 2 1 Centre · 1Cars running on renewable fuels would count as zero-emission, and the "super credits" the Commission had suggested for small affordable electric cars would extend to all vehicles regardless of size or length. 1 Centre · 1According to Anadolu, citing Handelsblatt, carmakers also get more flexibility to avoid fines: 2030 overshoots can be offset by 2031 reductions, CO2 credits can be accumulated from 2029, and plug-in hybrids are treated more favourably than the Commission planned. Member states would also no longer face mandatory quotas for electrifying large corporate fleets. 2

Centre · 2On industrial policy, France won stricter "made in Europe" rules. France 24 said application to cars is restricted to the EU's 27 countries, with an opt-in for a handful of others, notably Britain and Norway under certain conditions, which is narrower than the Commission's March proposal. Anadolu, citing Handelsblatt, said purchase incentives and public contracts would go only to European-made cars and that a growing share of batteries and key components must be made in Europe. 1 2 Centre · 2Anadolu reported British vehicles would count as European if London aligns its trade protection measures with EU standards. The office of UK Prime Minister Andy Burnham said that, if confirmed, the move would be good news for the British automotive industry and the jobs and investment it supports. 2 1 Centre · 2Paris and Berlin had long been at odds: Germany wanted less stringent carbon targets and a broad "made in Europe" definition including key non-EU partners, while France wanted to preserve climate ambitions and keep the procurement scheme to EU nations. France 24 said Berlin won the first argument and Paris the second, and Anadolu said both countries aim to push the rules through the Council of the EU. 1 2