France and Germany reach a compromise for the European automotive industry / CO2 emissions will be reduced by 90% by 2035

France and Germany have reached a compromise on the future of Europe’s automotive industry on the sidelines of Thursday’s European summit, October 15. The agreement seeks to reconcile the protection of the European market with a relaxation of the 2035 climate targets, according to diplomatic sources cited by Le Monde and reported by Rador Radio Romania.

France accepted additional flexibility for hybrid vehicles and other cars with internal combustion engines, while Germany supported tighter rules concerning the “made in Europe” principle. Companies in the automotive sector receiving public funding would be required to use components produced in the European Union or in closely associated partner countries, such as the United Kingdom and Norway.

According to a document seen by AFP, automakers would have to reduce their CO2 emissions by 90% by 2035, without being required to offset the remaining 10%, as provided for in an initial proposal by the European Commission. The concession is justified by the increasing use of renewable fuels, including biofuels.

The agreement could facilitate negotiations between the member states and the European Parliament on legislation concerning European preference in strategic sectors and the rules applicable to the automotive industry.