Brussels, 1 October, (Brussels Morning Newspaper) – France and Germany are moving closer to a broad agreement on EU car rules, potentially bridging differences over vehicle emissions, alternative technologies and European manufacturing requirements as Brussels reshapes policy for one of the bloc’s most important industries. The negotiations could give Paris and Berlin greater influence over forthcoming EU decisions affecting carmakers, suppliers and electric-vehicle investment.
France and Germany move closer on automotive policy
The emerging compromise centres on two priorities that have not always aligned. Germany has sought more flexibility in European CO₂ requirements and greater recognition of technologies and alternative fuels alongside battery-electric vehicles. France, meanwhile, has pressed for stronger European-content provisions designed to encourage manufacturing and investment within the EU.
The discussions are closely connected to the EU’s automotive package and the proposed Industrial Accelerator Act, which would use European-content requirements in strategically important sectors.
A Franco-German agreement would not itself change EU legislation. However, a common position between the bloc’s two largest economies could carry considerable weight as member states and the European Parliament negotiate the final rules.
‘Made in Europe’ remains a key negotiating issue
One of the most difficult questions concerns what should qualify as European production.
France has pushed for a clearer distinction between products manufactured inside and outside the EU. Germany favours a more open approach towards goods and components from countries that have close trade relationships with the bloc.
A German position paper reported in September said Berlin opposed protectionism and discrimination, while supporting reciprocal access to procurement and support programmes. France has resisted automatically treating products from partner countries as equivalent to EU-made goods.
The distinction could have significant consequences for vehicle manufacturers, battery producers and suppliers deciding where to invest.
Paris and Berlin pledged joint approach
The negotiations follow commitments made at the Franco-German Ministerial Council in July.
France and Germany said they would work towards a joint position covering both the automotive package and related provisions in the Industrial Accelerator Act. Their official declaration described the European Commission’s review proposal as a basis for advancing “technology-neutral, flexible CO2 regulations and EU content requirements”.
Both governments also backed measures intended to strengthen Europe’s automotive manufacturing base while accelerating the uptake of zero- and low-emission vehicles.
European carmakers face growing competitive pressure
The talks come as policymakers seek to balance climate targets against mounting concerns about industrial competitiveness.
European manufacturers are facing pressure from Chinese competitors, while policymakers are also examining how regulation can support investment in batteries, critical components and vehicle production within Europe. French President Emmanuel Macron has repeatedly advocated European preference in strategic industries, including automotive manufacturing and batteries.
That industrial challenge has made the debate over EU car rules about more than emissions. It increasingly encompasses manufacturing, trade, investment and Europe’s economic security.
Franco-German compromise could shape Brussels negotiations
The immediate significance of an agreement would be political rather than legislative. The European Commission, European Parliament and EU governments will still determine the final shape of relevant legislation.
Paris and Berlin also have unresolved differences, particularly over how products from the EU’s trading partners should be treated under European-content requirements.
Nevertheless, a comprehensive Franco-German compromise could provide a foundation for broader negotiations in Brussels and clarify how Europe intends to combine its climate ambitions with efforts to protect automotive jobs, manufacturing capacity and investment.
