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France and Germany reach car industry deal, opening door to UK

Fransa və Almaniya avtomobil sənayesi üzrə razılığa gəldi, Britaniyaya qapı açıldı
— Photo: AnewZ - Latest

The EU summit discussed easing vehicle emissions rules, trade tensions with China and financial support for Ukraine. The Franco-German agreement could allow the United Kingdom to take part in future industrial initiatives.

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EU leaders concluded a summit in Brussels with agreements on several key issues, including support for the automotive industry, trade tensions with China and funding for Ukraine, AnewZ reports.

The main breakthrough was a compromise between France and Germany aimed at easing planned rules on vehicle emissions and expanding opportunities for industrial cooperation in Europe.

Paris and Berlin agreed on a revised framework for emissions standards for future vehicles. It preserves the EU’s 2035 carbon-emissions reduction target but removes additional compensation requirements that many manufacturers considered burdensome.

Several major automakers and investors welcomed the compromise, saying it would help preserve Europe’s industrial competitiveness during the transition to cleaner technologies.

The proposal also broadens the definition of “made in the EU.” Under the Franco-German plan, countries that joined the EU’s single market in the early 2020s could be considered trusted partners for the automotive sector. This provision could allow the United Kingdom to take part in future European industrial initiatives after Brexit.

French President Emmanuel Macron proposed extending measures to protect industry beyond the automotive sector. He said the EU should apply similar mechanisms to other industries, including plastics, chemicals and ferroalloys.

EU discusses trade with China and migration

European Commission President Ursula von der Leyen signalled a tougher stance on Chinese products. She said recently agreed measures would not fully address long-standing trade imbalances.

Von der Leyen said the EU’s trade deficit with China remained large and that European industry wanted stronger safeguards. “We will address industry’s concerns,” she said, adding that Brussels was developing additional protective measures beyond those already agreed with Beijing.

Her remarks indicate that the EU is preparing to impose further restrictions on certain imports to protect local producers from what many European governments consider unfair competition.

Von der Leyen also warned at the summit that state and non-state actors were deliberately manipulating migration flows. She said some governments and organizations were knowingly encouraging sudden population movements to overwhelm border agencies, create instability and deepen divisions in Europe.

EU leaders therefore discussed the need for emergency tools and coordinated responses to future migration crises.

The EU’s next seven-year budget, covering 2028-2034, was also a major topic at the summit. Macron urged leaders to accelerate negotiations, warning that waiting until next year could complicate discussions because of elections in several member states.

The French president opposed holding a decisive budget summit in March. He said a meeting just weeks before France’s presidential election would make it harder to reach a compromise.

German Chancellor Friedrich Merz agreed that negotiations should continue until the end of the year, but stressed that further cuts to the proposed budget were necessary. He said an additional European Council meeting in November was also possible.

Additional funding for Ukraine in 2027 discussed

Support for Ukraine remained one of the summit’s main issues. European Council President Antonio Costa said EU leaders had asked the European Commission to prepare proposals on Ukraine’s additional funding needs for 2027.

The move comes amid growing concern that Kyiv could face a significant budget shortfall next year if the war with Russia continues.

Estonian Prime Minister Kristen Michal said additional European financial assistance would almost certainly be needed. He said sustained funding was important to Ukraine’s ability to resist Russia’s invasion.

Macron also criticized US President Donald Trump’s decision to allow Russian diesel to return to international markets, saying it was unhelpful.

Diplomats and officials at the summit said the French president had described the decision as a source of uncertainty that undermined trust as European allies sought to maintain a united position on Russia.

Ukrainian President Volodymyr Zelensky, speaking on the sidelines of summit meetings, also criticized the diesel arrangement. He said Ukraine opposed any proposal that could eventually lead to frozen Russian assets being returned to Moscow.

While Friday’s discussions produced progress on industrial policy and support for Ukraine, many of the most difficult decisions remain unresolved. The Franco-German automotive compromise must win the backing of other member states and the European Parliament. Talks on the EU budget and additional financial assistance for Ukraine are expected to continue in the coming months.

With elections approaching in European countries and trade tensions with China increasing, leaders are under growing pressure to reach agreements before the political calendar makes compromise more difficult.

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