End of nuclear power by 2035: France makes a major concession to Germany
After months of negotiations, France and Germany have reached an agreement on the future of Europe’s automotive industry. Paris agrees to relax the CO2 emission reduction targets for 2035. In return, Berlin supports stricter rules to promote vehicles manufactured in Europe. This compromise will change things for car brands. Here’s an overview.
France makes a major concession regarding 2035
France and Germany did not share exactly the same vision for the future of automobiles. On one hand, Paris wanted to accelerate electrification while protecting European manufacturing. On the other hand, Berlin demanded more flexibility to allow its automakers to continue selling internal combustion engine vehicles.
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The two countries seem to have reached a compromise. Under the terms of the provisional agreement, automakers will need to reduce CO2 emissions from their new cars by 90% by 2035 compared to 2021, rather than 100% as originally planned. More importantly, the remaining 10% would no longer require compensation through additional measures such as using low-carbon steel or alternative fuels. This provision could allow automakers to continue selling certain vehicles equipped with internal combustion engines after 2035, particularly hybrids.
France therefore agrees to extend the lifespan of internal combustion engines beyond 2035. However, this does not mean that gasoline and diesel cars can continue to be sold as they are today. In fact, the 90% reduction still requires a massive shift toward electric vehicles in sales. In return, Germany agrees to better protect European automobile production from foreign competition.
Germany agrees to strengthen Made in Europe
The second part of the compromise relates to automobile production. France has been advocating for months for European preference for vehicles that receive government subsidies. The goal is to support factories and suppliers on the Old Continent as Chinese competition intensifies.
Germany is now accepting a more restrictive definition of Made in Europe. This would primarily apply to the 27 countries of the European Union, but could also include certain close partners such as the United Kingdom and Norway, under certain conditions. This compromise might benefit manufacturers that produce their electric vehicles and components in Europe. It raises a question, however: to what extent should climate goals be relaxed to protect industrial jobs?
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Nothing has been finally adopted yet
For now, this is a political agreement between Paris and Berlin, not a new European regulation. The proposals still need to convince other member states and gain approval from the European Parliament. Nevertheless, this compromise could have a significant impact on future discussions. France and Germany have just shown they are willing to make concessions to protect their automotive industry. It remains to be seen whether this new approach will truly enhance European competitiveness without slowing down the transition to electric vehicles.