Germany and France Reach Agreement to Lessen Ban on Combustion Engines

Germany and France have reached a provisional agreement to soften the planned ban on combustion engines set for 2035. This agreement, which includes a sign that there will be more sales opportunities for combustion vehicles after 2035, was announced on Friday.

As part of this agreement, France accepts additional concessions regarding CO2 emissions for new cars. At the same time, Germany has agreed to a stricter definition for the European production share in the automotive industry. This represents a compromise expected to strengthen the industry in Europe, particularly given the intense competition from China.

According to the countries, the CO2 reduction target for new cars will be lowered from 100 to 90 percent. This is intended to occur without additional compensatory measures. The agreement could be particularly significant for the struggling automotive industry, which has been suffering from structural changes in recent years.

Negotiations for the agreement lasted several months and occurred against a backdrop of differing views between the two countries. While Germany advocated for a relaxation, France initially resisted, particularly concerning strict environmental regulations.

The new regulations and proposals made under the so-called Industrial Accelerator Act have the potential to enhance the competitiveness of European car manufacturers. This could influence how the industry operates in the coming years as it faces market challenges.

Significant progress has also been made on the topic of 'Made in Europe,' where Germany and France support a joint vision. This agreement could be seen as an indicator of increased cooperation in European industrial policy, especially regarding strengthening European sovereignty. However, it remains to be seen how the implementations will be received in their respective national contexts.