France and Germany have reached a provisional agreement regarding the future of the automobile industry. To achieve this, Paris has validated additional flexibilities for thermal vehicles, demanded by Berlin in order to preserve its powerful automobile industry.
In exchange, Berlin accepts a stricter definition and the principle of a tightened European preference for the automobile industry from 2028, in order to resist the wave of Chinese vehicles which is sweeping across Europe.
Paris and Berlin also intend to soften a proposal from Brussels aimed at electrifying company fleets, by asking to integrate certain low-emission thermal vehicles. European preference requires companies benefiting from public funds to source components manufactured in Europe or in certain partner countries.
This agreement should allow the European Union to move forward on its automobile package and its legislation on European preference, currently being negotiated between the Twenty-Seven and in the European Parliament.