Franco–German deal on cars and ‘Made in Europe’ is ‘hours or days’ away, says EU industry boss

A Franco-German deal on strengthening protections in the Industrial Accelerator Act (IAA) is expected to be finalized "in the next few hours or in the next few days," according to the EU industry chief Stéphane Séjourné. Speaking at POLITICO's Competitiveness Summit in Paris, Séjourné hopes the agreement will help "break the deadlock, particularly in the European Parliament" on the IAA.

The deal involves a strengthening of protections in exchange for a loosening of combustion engine rules and emission rules, provided that decarbonization targets are not fully abandoned. French President Emmanuel Macron had previously stated that a grand bargain with Germany was "imminent." The industry chief emphasized the importance of this agreement, stating that it is a European agreement and crucial to green-lighting the IAA.

The deal aims to ease tensions in the European Parliament, where a minority of lawmakers from the center-right European People's Party, mostly from the German delegation, have sought to reject or substantially weaken the proposal. Séjourné called the debate over the opt-in and opt-out systems for the IAA irrelevant, emphasizing that reciprocity with countries the EU works with is the most important factor.

He stressed that European public funds should be used for public procurement and that the goal is to keep production running smoothly in Europe. Séjourné also highlighted the need for Europe to continue building credible trade defense instruments while acknowledging China's belief in their power struggle with the Trump administration.

Lastly, Séjourné commented on a member country unilaterally cutting its contribution to the EU, stating that it would be akin to leaving the bloc, as members are expected to pay their membership fees to gain access.