France-Germany agreement on automotive and 'made in Europe'

France and Germany announce the agreement on the future of the automotive industry and on the criteria for 'made in Europe'. The agreement was made official with a joint declaration after this morning's bilateral meeting on the sidelines of the EU Summit between Emmanuel Macron and Friedrich Merz.

The Franco-German automotive agreement confirms a 90% cut in CO2 emissions by 90% by 2035 (compared to 2021) but without compensation from producers to take into account the "growing use of renewable fuels" estimated on the market, provides for the agreement reached by France and Germany to unblock negotiations in Brussels on two of the main pillars of the industry: the automotive package and the Industrial Accelerator Act to introduce a system of 'European preference'.

In the agreement, as far as we know, Paris and Berlin have agreed on the need to create European legislation that allows, even after 2035, "the registration and use of vehicles powered by renewable fuels" to establish at a regulatory level "a technological opening" loudly requested by Germany but also by Italy.

The agreement also aims to "legally" guarantee that vehicles with internal combustion engines can continue to be registered even after 2035, provided that they are powered exclusively by fuels with zero CO2 emissions to create a "long-term perspective for internal combustion technologies and strengthen technological openness".