France and Germany Agree to Favor European-Made Cars, Softening 2035 Emissions Target

France and Germany reached a deal that will give European‑made cars a boost under the EU’s Industrial Accelerator Act while easing the bloc’s 2035 vehicle emissions target. Germany will accept stricter “Made in Europe” local‑content rules for the automotive sector, a long‑standing French demand, and France will back Berlin’s push to reduce the 2035 target from a 100 % cut in new‑vehicle emissions to 90 %, without requiring compensatory investments in alternative fuels. The agreement, which was stalled by intra‑coalition disputes in Germany, was secured after the junior Social Democratic Party dropped its opposition. An Elysée official said the new rules could extend to the UK and Switzerland under certain conditions. The pact aims to strengthen the EU’s industrial base, preserve jobs, and maintain competitiveness while still pursuing climate objectives.