France and Germany strike deal on Made in Europe rules and car emissions
French President Emmanuel Macron and German leader Friedrich Merz have reached a compromise on the "Made in Europe" principle and car emissions rules. The draft pact backs tighter eligibility rules for non-EU countries and softens the 2035 combustion engine ban.
France and Germany, the two largest economies in the European Union (EU), have reached a bilateral agreement on two contentious issues: the "Made in Europe" principle, which favours EU-based producers, and car emissions rules. Politico Europe reports that the deal was delayed by late discord between the two sides.
What the draft pact contains
According to the draft, the two countries support tighter eligibility rules for non-EU countries that want to take part in public procurement and receive public support. The document also softens the ban on combustion engines that is due to take effect in 2035.
Wider context: the EU budget talks
The agreement comes as EU leaders negotiate the bloc's budget. At a summit, French President Emmanuel Macron warned fellow leaders that a budget deal must be agreed by the end of the year, because from January there would be no political room left to conclude one.
Politico's analysis says Macron and German leader Merz hold the keys to a budget compromise, but that political pressures at home limit their room for manoeuvre. Marine Le Pen, described as the front-runner in France's presidential race, repeated before Thursday's summit her campaign promise to cut France's payments to the EU by billions of euros and to downsize the bloc.
The source gives no details on when or how the Franco-German deal would be formally approved at EU level.
