“Auto-Paket”: What France and Germany propose for CO2 targets
A few days ago, it was reported that Germany and France have agreed on a negotiating position that would soften the EU’s goals for phasing out internal combustion engines while strengthening the planned “Buy European” requirements. Now, excerpts from the preliminary agreement document have been made public.
Image: Florian Treiß
Last week, FAZ and Handelsblatt reported unanimously that French President Emmanuel Macron is giving up his resistance to relaxing EU fleet size limits for cars. In return, German Chancellor Friedrich Merz is said to be shifting from his bisher defensive stance against overly strict “Made in EU” requirements. They have reached an agreement on the general outlines, but further details are still under negotiation, according to EU diplomats last week. Der Spiegel now cites the preliminary agreement document from both sides, which is intended to serve as a basis for negotiations at the EU level.
Generally, France and Germany have held different positions on key aspects of the “Auto Package” so far. However, Chancellor Merz and President Macron are now each making concessions on one major issue in exchange for support on another core concern. France is said to be willing to help relax CO2 fleet limits even beyond what the Commission has proposed. In return, Germany is compromising on the planned Industrial Accelerator Act (IAA) and supporting stricter “Made-in-Europe” rules than originally intended.
According to the agreement document, both sides now propose that manufacturers’ CO2 fleet targets must be reduced by only 90 percent by 2035 instead of 100 percent. The remaining 10 percent would explicitly not need to be offset by manufacturers — in this regard, the document goes beyond the EU Commission’s proposal from last December.
Just over a week ago, the “Handelsblatt” reported that Germany and France advocate for an additional relaxation of 10 percentage points without compensation. Thus, “combined with offset options, the reduction could theoretically reach at least 80 percent.” However, this does not appear to be the case. The plan is to stick with the 90 percent from the Commission’s proposal, except that manufacturers do not need to offset the remaining 10 percent.
The provisional agreement states: “Given the significant technological, economic, and geopolitical changes since the existing legal framework was established, the automotive package should achieve a better balance between climate goals, industrial competitiveness, technological development, and strengthening European value creation.” It also says: “This would take into account the increasing use of renewable fuels in the existing vehicle fleet. Therefore, manufacturers would not need to make up for the share that corresponds to ten percentage points of the remaining emissions.”
Regarding the strengthening of the “Made in Europe” approach, both sides insist that government subsidies should primarily flow into European automobile production. “A key element of the package should be a stronger link between public support and European value creation,” Spiegel quotes from the document. However, it does not get any more specific at this point.
According to Spiegel, early stakeholders are already criticizing the move. Susanne Goetz, an expert at the organization Transport and Environment (T&E), warns: “Germany and France are making a historical mistake.” Europe must become less dependent on oil imports and needs affordable electric cars. “But this agreement drastically slows down the sales of electric vehicles.” Skepticism also comes from parliament: “This draft is not sufficient,” said SPD European lawmaker Tiemo Wölken to Spiegel. Lower ambitions for CO2 reduction without any compensatory measures make achieving climate goals in the transport sector “unlikely to impossible.”