France and Germany have published a joint position on the future of the European automotive industry. The document combines calls for greater flexibility in meeting emissions targets with preferences for production in Europe. As France has so far opposed further easing of the rules, the agreement could determine the shape of the EU’s automotive package and the Industrial Accelerator Act. According to PSNM, the key priority for Poland will be to ensure that industrial opportunities go hand in hand with a genuine increase in electric car sales.

The joint position represents a compromise between the EU’s two largest economies.

The declaration by France and Germany is the result of efforts to develop a common approach to the automotive package and the automotive-related provisions of the Industrial Accelerator Act. The position represents a series of mutual concessions. Until now, Germany had sought more lenient rules for manufacturers but rejected “Buy European” requirements, while France had advocated the opposite approach. Berlin now accepts stronger preferences for production in Europe, while Paris supports further flexibility in emissions targets.

The significance of the agreement is primarily political. Together with six other countries — Sweden, Spain, Denmark, Luxembourg, the Netherlands and Portugal — France had formed a blocking minority opposing any relaxation of the rules beyond the European Commission’s proposal. Paris’s change of position is likely to secure the majority needed in the Council of the EU to adopt such measures.

The European Commission proposed easing the targets as early as December 2025.

Under current legislation, the average CO₂ emissions of new passenger cars sold in the EU must fall by 55% by 2030 and by 100% by 2035, compared with 2021 levels. In practice, this means an end to the sale of new cars emitting CO₂ through their exhaust systems from 2035.

On 16 December 2025, the European Commission presented its automotive package, proposing to reduce the 2035 target to 90%. Manufacturers would have to offset the remaining 10% of emissions, including through the use of low-carbon steel produced in the EU, synthetic fuels and biofuels. The Commission also proposed allowing the 2030 target to be assessed over a three-year period rather than on an annual basis, as well as reducing the 2030 target for vans from 50% to 40%.

The package also provides for so-called supercredits, which would give preferential weighting to small electric cars manufactured in the EU when calculating manufacturers’ average emissions, as well as binding national electrification targets for large corporate fleets. These are the mechanisms referred to in discussions about multipliers and changes affecting fleets.

The second pillar of the EU’s industrial policy is the Industrial Accelerator Act, presented by the Commission on 4 March 2026. It aims to increase demand for low-carbon technologies and products manufactured in Europe. Under the Commission’s proposal, an electric car would have to source at least 70% of the cost of its components from the EU to qualify for public procurement contracts and support schemes.

France and Germany propose further flexibility in emissions targets

France and Germany are calling for the 90% emissions reduction target for 2035 to be maintained, but without requiring manufacturers to offset the remaining 10% of emissions. This would mean abandoning the compensation mechanism proposed by the Commission.

For passenger cars, the two countries propose averaging emissions performance across 2030–2031 and allowing manufacturers to bank emissions credits from 2029, up to a limit of 7 g CO₂/km per manufacturer. A manufacturer that achieves emissions below the required level in 2029 would therefore be able to carry forward part of that surplus towards its subsequent obligations. For light commercial vehicles, they propose a five-year compliance period for the 2025 target.

The exact years, rules for carrying over credits and arrangements for calculating compliance across manufacturer groups still need to be clarified. Details of the agreement are expected to be published in the coming days.

In return, Germany has supported stronger preferences for European-made products under the Industrial Accelerator Act. France has long advocated ensuring that public support for electric cars goes to models manufactured largely within the EU.

For Poland, the key is to combine industrial opportunities with demand

From PSNM’s perspective, strengthening European manufacturing is essential. However, the rules must translate into investment in Poland, orders for suppliers and the development of technological expertise.

The demand side is equally important. From January to August 2026, battery electric vehicles (BEVs) accounted for 21.7% of new passenger car registrations in the EU, compared with 15.8% a year earlier. In Poland, the share stands at around 5.1%. It is several times higher in Europe’s largest markets, reaching 28.2% in France and 24.8% in Germany in the first half of the year. Poland remains among the countries with the lowest levels of electrification of new passenger cars and therefore needs conditions that will help close this gap.

In further work on the package, Poland should advocate clear criteria for European added value and predictable conditions for electrification. For Poland’s new mobility sector, both industrial opportunities and a genuine increase in the number of electric vehicles on the roads are important.

“Europe’s automotive industry needs both competitive manufacturing and a predictable electric vehicle market. Preferences for European factories could benefit plants and suppliers in Poland. However, their effectiveness depends on demand. That is why the combined impact of emissions relief measures, multipliers and changes affecting fleets must be assessed in terms of actual BEV sales and the security of investments already made,” comments Aleksander Rajch, Vice President of PSNM and Vice President of E-Mobility Europe.

The automotive package awaits decisions by the Council of the EU and the European Parliament

The automotive package is still under negotiation. For the new rules to enter into force, both the Member States in the Council of the EU and the European Parliament must adopt their respective positions. In Parliament, the Transport Committee has postponed a key vote on the package, originally scheduled for 5 October.

PSNM will analyse the details of the Franco-German agreement once they are published. The association will also recommend solutions that combine strengthening European manufacturing with a predictable pathway for transport electrification in Poland.