France, Germany reach deal on future of car industry
AgenciesFrance and Germany have backed a further scaling down of EU emission rules for cars as part of a long-negotiated deal on the automotive industry, diplomatic sources confirm...
France and Germany have reached an agreement on the future of the European automotive industry, according to diplomatic sources. The two major European economies have agreed to reduce the strict EU emission rules for cars, according to a draft document outlining the pact. The decision comes as Europe seeks to revive its struggling auto industry.
Initially, Germany advocated for less stringent carbon emission targets for car manufacturers and a broader interpretation of "made in Europe" to include non-EU trade partners. However, France pushed for preserving the bloc's climate ambitions and restricting the "made in Europe" public procurement scheme to EU nations only. Ultimately, Berlin won the argument on emission targets, while Paris emerged victorious on the "made in Europe" definition.
The deal scrapes the requirement for residual emissions to be compensated by manufacturers through various credits. It also allows cars running on renewable fuels to be classified as "zero-emission" and makes it easier for automakers to meet CO2 targets. Moreover, the agreement extends "super credits" for small "affordable" electric cars to all vehicles, regardless of their size or length.
In terms of geographical scope, the "made in Europe" definition applies to the EU's 27 countries, with an opt-in for additional countries like Britain and Norway under specific conditions. This narrower definition is in contrast to the one proposed by the EU Commission in March. The agreement is provisional until final approval is obtained from Berlin.
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