Macron and Merz Agree to Ease EU Car Emissions Rules, Demand Stricter Production Standards

Emmanuel Macron and Friedrich Merz agreed on a joint position to ease EU car emissions rules, while also demanding stricter production requirements for subsidized electric vehicles. They propose lowering the required tailpipe emissions reduction to 80% by 2035, which would allow manufacturers to sell more combustion-engine vehicles after that date. The leaders also seek a five-year compliance assessment period for the 2030 target instead of the European Commission's proposed three years.

The agreement seeks to modify the current EU law, which mandates a 100 percent reduction in carbon dioxide emissions from new cars and vans by 2035. This shift could alter the market for combustion-engine vehicles and change the regulatory scope of the European Commission.