Germany, France agree to further weaken EU 2035 combustion engine ban
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Germany and France have agreed on joint proposals to further weaken the EU's planned 2035 ban on new combustion-engine cars. The compromise would require manufacturers to reduce average emissions by only 90 percent from 2035, without compensating the remaining 10 percent, allowing continued sales of petrol and diesel vehicles. In exchange, Germany accepts restricting state subsidies mainly to cars produced in EU member states, with possible recognition of the UK. The deal could secure a majority in the EU Council, but environmental and transport groups warn it is a 'historic mistake' that could seal the decline of Europe's auto industry. Green MEP Michael Bloss called it a 'brake block' on electric vehicle growth, while FDP MEP Jan-Christoph Oetjen praised it as a signal of support for the automotive industry.
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Last updated: October 16, 2026, 11:55 AM
Cars are essential for some. How they are powered is of particular interest to the German auto industry. Photo: Sebastian Kahnert/dpa
Germany and France have agreed on joint proposals for the automotive industry that would further weaken the 2035 combustion engine ban. Both sides stated: "We aim for a significant reduction in CO₂ emissions while strengthening Europe's capacity for the development and manufacturing of the next generation of electric vehicles."
Reversing the combustion engine ban was the German government's main demand. This would resolve a dispute between the two countries that threatened to block two legislative procedures in Brussels.
In return, Germany has agreed to concessions on preferential treatment of European-origin products in industrial subsidies, according to a four-page position paper.
Until now, France had opposed any loosening of the combustion engine ban. An agreement between the two largest European economies could secure a majority in the Council of the EU member states.
Reversal of the Combustion Engine Ban
The EU Commission proposed last December to allow new cars with combustion engines in the EU after 2035 — a reversal of the combustion engine ban that had originally been negotiated. Germany had advocated for this.
The proposals are currently being deliberated by the European Parliament and the Council of the EU member states. Without approval from both institutions, they will not take effect. France and six other EU countries had opposed any loosening in June and warned of a strategic mistake.
Proposal Would Loosen Restrictions Even Further
According to Handelsblatt, the German-French compromise paper now proposes, among other things, that manufacturers would only need to reduce their average emissions by 90 percent from 2035, without having to compensate for the remaining 10 percent. This would allow them to continue selling new gasoline and diesel vehicles as long as their new car fleet meets the prescribed limit.
The EU Commission had proposed that the remaining 10 percent must be fully compensated through CO₂-neutral fuels or green steel. The German-French proposal thus gives manufacturers even more flexibility.
In return, Germany agrees to fundamentally restrict state subsidies to cars manufactured in the 27 EU member states. However, the United Kingdom could also be recognized, meaning that state purchase incentives for cars could also apply to British cars. Germany had previously advocated for a softer regulation that would include suppliers from more trading partners.
"Historic Mistake" or "Blueprint for Agreement"?
The transport association T&E Germany warned in an initial reaction of a "historic mistake." Mobility officer Susanne Goetz criticized: "German and French politicians claim they want to save jobs. But this deal could ultimately seal the decline of the European automotive industry." Europe must reduce its dependence on imported oil, ensure affordable electric cars, and give the industry a clear incentive to invest in electric vehicles and their supply chains.
MEP Michael Bloss, chief negotiator of the Green group on CO₂ fleet limits, called the deal a "brake block for the booming ramp-up of electric cars." "The auto industry only has a future if we build good and affordable electric cars in Europe."
Jan-Christoph Oetjen, transport policy spokesperson for the FDP in the European Parliament, spoke instead of an important signal of support for the automotive industry. "Flexibility for automakers and technological openness in achieving our climate goals helps not only manufacturers but also suppliers."
Related articles:
- Environmentalists Against Merz-Macron Deal: The Two from Yesterday — A German-French proposal could seal the decline of the European automotive industry, fear environmental and transport experts. By Kai Schöneberg
- CO₂ Fleet Limits: Europe's Automakers Are Coping Well with Climate Targets — More electric cars, more affordable models: CO₂ limits for automakers are showing effect. Nevertheless, the imminent combustion engine ban is up for debate. By Nanja Boenisch
- Future of E-Mobility: Greens Fear Right-Wing Combustion Engine Coalition — Will the end of the combustion engine ban be weakened even further? Greens warn of cooperation between conservatives and far-right in the EU Parliament. By Kai Schöneberg
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taz.de - taz.deWestern
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Germany and France Agree Joint Position to Weaken EU 2035 Combustion Engine Ban