France and Germany have struck a deal to jointly push the European Union to cut its 2035 car CO2 emissions reduction target to 80% from the currently proposed 90%, according to reporting by Handelsblatt and the Frankfurter Allgemeine Zeitung, relayed by Clean Energy Wire. Chancellor Friedrich Merz and President Emmanuel Macron are expected to present the agreement to EU leaders in Brussels on 15 October 2026.
What the two governments want
France and Germany have agreed to push for a further weakening of the EU’s planned phaseout of new combustion engine cars, in exchange for Germany backing France’s demands for strict “Buy European” rules favouring EU-made products in public subsidies and tenders, according to Handelsblatt, which cited three unnamed sources. Until now, the two governments had blocked each other: Germany wanted looser rules for carmakers but rejected “Buy European” requirements, while France wanted the opposite.
According to Handelsblatt, Germany and France are demanding a further ten-percentage-point softening without compensation; with compensation options, the reduction could mathematically amount to at least 80%, giving automakers more leeway to sell more combustion-engine vehicles than under previous Brussels plans. The two countries also reportedly want to stretch the interim 2030 target. Under current EU law, new cars must cut CO2 emissions 55% versus 2021 by 2030; Merz and Macron want that compliance window extended from three years to five, running 2028 to 2032.
Third loosening in two years
The EU’s 2035 target started as a de facto ban on new combustion-engine car sales, part of a push toward climate neutrality by 2050. At the end of 2025, following pressure from Germany, Italy and carmakers, the European Commission already proposed cutting the 2035 CO2 target to 90% below 2021 levels instead of 100%, letting carmakers keep selling plug-in hybrids, range extenders and conventional cars if they offset remaining emissions with EU-made low-carbon steel, e-fuels or biofuels. The France-Germany push would go further still.
Clean transport group Transport & Environment has already criticized the Commission’s 90% proposal. It has warned that the Commission’s proposal alone would lower the share of battery-electric cars in 2035 new car sales to around 85%, and that car CO2 emissions between 2025 and 2050 would be about 10% higher than under the current rules. The group has not yet commented publicly on the reported 80% figure.
Not every EU government backs more flexibility. Seven member states, Denmark, France (prior to this reported shift), Luxembourg, the Netherlands, Portugal, Spain and Sweden, had earlier rejected any softening of the bloc’s car emissions rules, warning that fresh flexibilities would slow the shift to electric vehicles and undercut billions of euros already invested by Europe’s car industry. The reported France-Germany agreement would mark a reversal of France’s earlier position.
Why it matters
The CO2 target is the EU’s main lever for forcing automakers to sell more battery electric vehicles: looser rules reduce the compliance pressure that has pushed manufacturers toward EVs over hybrids and combustion models. Any change still needs approval from the European Parliament and the Council of the EU before it becomes law.
| Item | Detail |
|---|---|
| What | Proposal to cut 2035 car CO2 reduction target from 90% to 80% |
| Who | Germany (Chancellor Friedrich Merz) and France (President Emmanuel Macron) |
| Where | European Union, to be presented in Brussels |
| Date | Expected presentation: 15 October 2026 |
| Status | Reported deal, not yet an EU proposal; requires Parliament and Council approval |
What to watch
The Franco-German proposal is due to be presented to EU leaders on 15 October 2026; a European Parliament vote on the wider auto package has already slipped once, from 5 October, with officials now pointing to late November.
Sources
- Source: France and Germany strike deal to further weaken EU combustion engine phaseout – media, Clean Energy Wire
- Source: France set to follow Germany in softening CO2 targets, electrive.com
- Source: France and Germany cut deal to delay phase out of internal combustion cars, reports say, The Driven
- Source: EU countries reject weaker car emissions rules, Brussels Signal
- Source: Max stupid: EU may loosen EV rules for third time in two years, aiding China, Electrek