France and Germany have agreed on a joint position for the EU auto industry, according to diplomatic sources. The deal weakens the European Commission's proposed emissions rules: carmakers would no longer have to compensate for the final 10 percent of exhaust emissions, and the proposed super credits for small affordable EVs would apply to vehicles of any size. The 2035 ban on new petrol and diesel sales would still be replaced by a 90 percent emissions cut requirement. The two countries also narrowed the definition of made in Europe for cars to the EU's 27 member states, with opt-ins for Britain and Norway under certain conditions. That is a more restrictive approach than the Commission's March proposal, which could have extended the label to many partner countries. Germany pushed for weaker CO2 targets and a broader made in Europe definition, while France wanted to keep climate ambition and restrict the label to EU members. The compromise gives Germany its emissions position and France its procurement definition.
