France and Germany reportedly agree on EU car industry deal

France and Germany have reportedly agreed on a common approach to supporting Europe’s car industry, including looser emissions rules and measures favouring European production. The agreement could ease a long-running dispute between the two countries over how the EU should respond to the sector’s difficulties.

The deal was reported by several media outlets, including Agence France-Presse, citing sources. Its terms have not been set out in detail in the report [1].

Germany had pushed for less stringent CO₂ targets for carmakers and a broad definition of “made in Europe” in EU rules tying subsidies and public contracts to production on European soil. France wanted to preserve the EU’s climate ambitions and restrict eligibility under the scheme to EU countries.

Negotiations have been under way in Brussels for months. The reported compromise appears to give both sides ground on some points, including treating cars from the United Kingdom as “made in Europe” [1].