France, Germany push to carve auto rules out of EU industrial policy
Published 1 d ago2 sourcesEvidence: Reported
Late-stage disagreements between France and Germany have delayed a joint EU pact on 'Made in Europe' industrial policy and car emissions. The draft pact tightens non-EU eligibility for public procurement and support while softening the 2035 combustion engine ban, signaling a shift in EU industrial and climate policy. The delay underscores intra-EU friction over protectionism and climate goals, with implications for trade and automotive sectors.
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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