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The Macron-Merz agreement on stricter EU automotive rules could affect Dacia sales, but would favor production in Romania

Călin Nicolescu

19 October 2026, 09:33

Current Affairs

Foto captură site Dacia

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France’s President, Emmanuel Macron, and Germany’s Chancellor, Friedrich Merz, have announced a political agreement to support the European automotive industry, but their proposals could affect Dacia and other manufacturers that produce cars outside the European Union.

The French and German leaders support relaxing certain emissions targets for 2030 and 2035, so that manufacturers can retain limited scope for combustion engines. At the same time, they propose that 70% of a vehicle’s components, excluding the battery, be produced in the EU for the model to be eligible for public funding and to participate in public procurement.

The “Made in the EU” plan would include one significant exception for a partner country: the United Kingdom. Morocco and Turkey, where numerous models intended for the European market are produced, would remain outside this category.

Dacia would be among the affected brands. The Sandero, Jogger, and Logan are produced in Morocco, while a fourth model could be placed in the same situation. These cars could continue to be sold in Europe, but would no longer have access to programs such as Rabla or to public contracts. The Bigster and Duster, produced in Romania, as well as the Spring, manufactured in Slovenia, would remain advantaged.

The Franco-German proposal must be negotiated with the member states and the European Parliament. A vote could take place on November 23.

Context: France and Germany are preparing a compromise for the automotive industry, with relaxed CO2 targets and “made in Europe” rules

Before the announcement of the political agreement, France and Germany agreed on a package intended to support the European automotive industry, alongside adjustments to climate objectives. The agreement aimed to reconcile the protection of the European market with the relaxation of the targets for 2035, so that manufacturers would have more leeway for combustion engines.

The compromise also included changes related to how emissions are treated, eliminating the requirement for manufacturers to offset residual emissions. In the same framework, rules linking funding and access to programs to the use of components produced in Europe or in countries considered close partners were supported, with mentions of including the United Kingdom in the definition of vehicles “made in Europe.”

In Romania, discussions about competitiveness and costs have already been linked to Dacia’s production, and the authorities have been urged to take measures to reduce the gap compared with plants in other countries. In this context, measures such as the continuation of the Rabla program and the relaxation of rules concerning CO2 emissions were also cited as elements that could influence production and investment decisions.