# Paris and Berlin agree looser CO2 rules for carmakers and 'made in Europe' tenders

> Paris and Berlin have ended a long dispute over the European car industry, agreeing on looser emission rules and public contracts reserved under the 'made in Europe' system.

Economy · published 2026-10-17 12:12 · https://nlnow.nl/a/france-and-germany-agree-deal-on-future-of-eu-car-industry/

France and Germany have reached an agreement on the future of Europe's struggling car industry. The deal combines looser emission rules with more support for European production.

The two countries had long disagreed on how to revive the industry. Germany wanted less strict CO2 targets for carmakers and a broad reading of 'made in Europe' in EU law. That law is meant to tie subsidies and public tenders to production on European territory.

France wanted to keep the EU's climate ambitions and to reserve public contracts under the 'made in Europe' system.

Under the agreement, Germany gets its less strict CO2 targets and France gets public contracts reserved under the 'made in Europe' system.

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