France and Germany are close to a deal that would weaken the EU's 2035 phase-out of new petrol and diesel cars. According to diplomats cited by Reuters, the two countries want a 90% cut in CO2 from new cars by 2035, with no requirement for carmakers to make up the last 10%. They also want Britain counted as "Made in Europe" for car subsidies.
It is not law yet. The European Parliament and the other EU governments still have to agree.
Quick facts
| Current law | 100% CO2 cut for new cars from 2035 |
| Commission proposal (Dec 2025) | 90% cut, last 10% offset by EU green steel, e-fuels or biofuels |
| Franco-German position (Oct 2026) | 90% cut, no compensation required |
| UK | Would count as "Made in Europe" if it aligns with EU trade rules |
| Status | Provisional; needs Parliament and a qualified majority of EU states |
Will petrol cars be banned in 2035?
Under the law the EU adopted in 2023, yes, in effect: every new car sold from 2035 would have to emit zero CO2.
That changed in December 2025, when the European Commission proposed a 90% cut from 2021 levels instead. The remaining 10% could be covered with low-carbon steel made in the EU, e-fuels or biofuels. Plug-in hybrids, range extenders and some conventional cars could stay on sale. The Commission assumes 27–29% of new registrations could still have a combustion engine after 2035, electrive reports.
The Commission also proposed "super-credits" for small electric cars built in the EU, and letting carmakers average the 2030 target (a 55% cut) over 2030 to 2032.
What France and Germany now want
The new Franco-German position goes further. Reuters reports it would set the 2035 target at 90% with no further compensatory measures, "broadly in line" with what German carmakers want. Earlier reporting by Handelsblatt said they also want five years, not three, to meet the 2030 target.
The plan is described as provisional, and it "still needs to be confirmed." It also has opposition inside Germany: the Social Democrat environment minister has floated a 95% target, with the last 5 points offset by green steel, Reuters reports.
Why France switched sides
France had been part of a group of seven countries, with Sweden, Spain, Denmark, Luxembourg, the Netherlands and Portugal, resisting any weakening beyond the Commission's plan, according to Clean Energy Wire.
According to Handelsblatt and FAZ, Paris changed course in a trade-off. Germany would back France's push for stricter "Buy European" rules on public subsidies and tenders, part of the planned Industrial Accelerator Act, and France would accept a looser CO2 target.
What does it mean for the UK?
The plan defines "Made in Europe" for cars as the EU's 27 members plus European partners that were in the EU internal market on January 1, 2020. That would include Britain, which left the single market at the end of 2020.
There are conditions. Reuters reports UK inclusion would depend on full reciprocity and "dynamic alignment" with EU rules on investment from third countries and EU trade protection measures. That could mean Britain adopting EU measures that limit imports of Chinese-built hybrid and electric cars.
The case for and against
For: Germany, home to Volkswagen, BMW and Mercedes-Benz, argues its carmakers are struggling with Chinese competition and US tariffs and need flexibility. Carmakers and Berlin say a rigid deadline could strand factories and jobs. The carmakers' association ACEA wants even more leeway to offset emissions through low-carbon materials and more time, MLex reports.
Against: "Germany and France are making a historic mistake," said Susanne Goetz of Transport & Environment. The group warns the change will weaken demand for electric cars and European-made batteries. It estimates the Commission's proposal alone would cut battery-electric cars to about 85% of new sales in 2035 and raise car CO2 emissions from 2025 to 2050 by about 10%. SPD MEP Tiemo Wölken said the draft "is not sufficient."
When will the EU decide?
Two things have to happen:
- The European Parliament must pass it by a simple majority. electrive reports the transport committee vote slipped from October 5 by about two weeks, with a plenary vote planned for November.
- EU governments must reach a qualified majority: at least 15 countries representing at least 65% of the EU population.
With France on board, the reports say a majority of governments is likely. The Parliament is less certain.
For context on the competition European carmakers face, see our look at BYD's soaring exports.
What to watch
The Parliament votes, in committee and then in plenary in November.
Whether other governments accept the Franco-German line, or push back towards the Commission's version.
London's response to the "Made in Europe" offer, and its conditions on Chinese imports.
Published Sunday, October 18, 2026. The Franco-German position is provisional and described by diplomats cited by Reuters; it has not been formally published. This page will be updated as the EU decides.
