Handelsblatt, citing three people familiar with the matter, reported Chancellor
Merz and President Macron have agreed that France will concede on the
combustion-vehicle phase-out in return for Germany softening 'buy European'
procurement demands. Current EU law requires a 100% reduction in average CO2
emissions for newly registered vehicles by 2035 versus 2021—effectively a sales
ban on combustion-engine cars. Under pressure from Germany, the European
Commission proposed in Dec 2025 to relax the target to a 90% cut by 2035, with
the remaining 10% offsettable via low-carbon European steel, e-fuels and
biofuels. The Merz-Macron plan would go further than the Commission proposal; EU
diplomats say a broad framework is agreed but substantive details are still
being negotiated.
