France and Germany’s car emissions package faces dispute over its status

France and Germany’s proposed package on EU car emissions and car-sector Made in Europe rules remained unsettled on 15 October. POLITICO reported that the agreement stalled Thursday evening over objections from Germany’s Social Democratic Party, while France 24, carrying AFP reporting, said diplomats described a provisional deal awaiting Berlin’s final sign-off. The distinction matters for carmakers and countries seeking access to European support: neither account establishes an approved EU policy change.

How the proposed car emissions rules would change

The package links German acceptance of tighter Made in Europe criteria for the car sector with greater flexibility on emissions, according to POLITICO. Its account said the proposal would lower the 2035 emissions-reduction target from 100% to 90% against 2021 levels, with up to a further 10% leeway tied to investment in alternative fuels. POLITICO said opposition from the Social Democratic Party over environmental targets held up an agreement Thursday evening.

France 24’s AFP report described further proposed changes: cars using renewable fuels could count as zero-emission, a requirement to compensate for residual emissions would be removed, and proposed super credits for small, affordable electric cars would extend to vehicles regardless of size or length. POLITICO also reported that the draft would use laboratory results rather than real-world data to calculate the plug-in hybrid utility factor.

The draft would also drop a green-steel investment requirement, POLITICO reported. An unnamed industry lobbyist quoted by the outlet criticized that change, saying it would undermine a lead market for steel.

Who could qualify under Made in Europe rules

Both accounts describe car-sector eligibility centred on the EU’s 27 member countries, with conditional routes for some non-EU countries. POLITICO reported a possible route for the UK; France 24’s AFP account also mentioned Norway. AFP said the proposed definition is narrower than the European Commission’s March proposal, which could have included dozens of EU partner countries offering reciprocal access to public procurement.

POLITICO reported that UK officials welcomed the possibility of inclusion while acknowledging that a European process remained. Beyond Berlin’s pending sign-off described by AFP, the proposal would still need approval from other EU countries and the European Parliament, according to POLITICO.