France and Germany reach a deal to support Europe’s struggling car industry amid mounting competition from Chinese electric vehicle makers. The agreement includes changes to EU rules linked to the 2035 engine transition and outlines how “Made in Europe” sourcing standards will be applied. Outlets report the pact is intended to safeguard jobs and encourage investment in European auto development and research.
The deal also addresses how partners can access “Made in Europe” benefits. The Financial Times reports Germany secures concessions related to combustion engines, while France limits partners’ access. Euronews and France 24 say the agreement links the 2035 CO₂ emissions target to the “Made in Europe” approach and eases the remaining-emissions treatment compared with an earlier European Commission proposal. Multiple outlets add that the UK may be included as a trusted partner under “Made in EU” rules, provided it aligns with EU policy, including tariffs on China. The precise balance between emissions requirements, engine transition timelines, and partner eligibility is presented as a major shift for both automotive and climate policy in the bloc.
