Merz and Macron reportedly agree on changes to EU car rules — Anadolu Agency

German Chancellor Friedrich Merz and French President Emmanuel Macron have reportedly agreed on a major reform of EU automotive policy. As Anadolu Agency reports, both countries intend to promote the new rules in the Council of the European Union.

Relaxing rules after 2035

Under the plan, the target of reducing carbon dioxide emissions by 90% from 2035 will remain in place. At the same time, manufacturers will no longer be required to offset the remaining 10% through climate-neutral fuel or low-carbon steel.

Manufacturers will be able to continue selling cars with petrol or diesel engines if their emissions comply with the established limit. Cars running exclusively on renewable fuel will be considered zero-emission if technical restrictions make the use of fossil fuel impossible.

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Companies are also planned to be given greater flexibility in meeting climate targets: exceeding targets in 2030 may be offset by emissions reductions in 2031, while carbon dioxide emission credits may be accumulated from 2029. For plug-in hybrids, the calculation of greenhouse gas emissions is to be more favorable than the European Commission had envisaged.

Requirements for production in Europe

According to media reports, Macron secured stricter requirements for production in the EU. Purchase incentives and public contracts are to be provided only for vehicles manufactured in Europe. In addition, an increasing share of batteries and key vehicle components must be produced in Europe, while state subsidies should primarily be directed toward European car production.

According to Handelsblatt, Merz also secured the abolition of mandatory quotas for EU member states to electrify large corporate vehicle fleets. British cars may be considered European if the United Kingdom aligns its trade protection measures with EU standards.