Paris and Berlin Align to Soften EU Tailpipe Emissions Rules

A 90% tailpipe-emissions cut from 2035 — that's the number France and Germany now want to bend without officially breaking. The two largest car-producing nations in the EU have agreed a joint approach to ease the European Commission's proposed vehicle emissions requirements, and for Europe's powertrain planners, the details land harder than the headline.

The agreement, set out in a joint statement from the French and German governments, keeps the decarbonisation destination in place while widening the road. "Our course remains unchanged: to achieve substantial reductions in CO₂ emissions while strengthening Europe's capacity to develop and manufacture the next generation of electric vehicles," the two governments said.

What survives, and what gives?

Under the Commission's framework, carmakers must meet a 90% reduction in tailpipe emissions from 2035. The remaining 10% could be offset through low-carbon steel produced within the EU, or through e-fuels and biofuels. That escape hatch is the quiet revolution here — it converts a de facto battery-electric mandate into a broader technology menu.

The Franco-German approach goes further. It would allow plug-in hybrids, range extenders, mild hybrids and internal combustion engine vehicles to keep a role after 2035, alongside fully electric and hydrogen-powered vehicles. For suppliers of transmissions, turbochargers and 48-volt systems, that sentence is worth more than any stimulus package announced this year.

Where does the "European preference" come in?

Before 2035, manufacturers could receive "super credits" for small, affordable EVs made in the EU — a mechanism the Commission said would encourage more small EV models. The credit effectively rewards volume production of European-built city cars, the segment where European OEMs have struggled most against cheap imports.

France and Germany frame this as "European preference": tying the shift to clean mobility to investment, innovation and production at home. "This is what European preference means in practice: ensuring that the transition to clean mobility goes hand in hand with investment, innovation and production in France, Germany and across Europe," the joint statement reads.

The package also pairs what the two countries call an "ambitious" European decarbonisation pathway with regulatory flexibility reflecting differing market conditions and technological circumstances. It adds measures to support investment, research and development, European manufacturing and resilient supply chains.

The takeaway: the 2035 target survives in name, but the technology mix underneath it just got negotiable.

Is this a plan or a wish list?

Treat it as announced intention, not confirmed regulation. A joint Franco-Grench position — even one this specific — carries weight in Brussels, but it is a negotiating stance until the Commission revises its proposal and member states vote. Supplier announcements building on assumed super credits should be checked against actual production data, not press releases.

Still, the direction matters. The two governments said the proposal would support EU climate goals while strengthening the industry's technological sovereignty, industrial base and international competitiveness. That's the language of industrial policy, not environmental policy, and it signals where the political weight now sits.

What to watch next: whether the Commission formally amends the 2035 text to include the low-carbon-steel and e-fuel offsets, and which member states line up behind or against the Franco-German position when the Council votes.