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France and Spain Reject Hybrid Exemptions in 2035 EU Car Rules, Back EU-Made Incentives

A joint paper from Paris and Madrid sets up a clash with Germany as the European Commission prepares a year-end revision proposal.

Overview

  • At an EU environment ministers’ meeting in Luxembourg, France and Spain submitted a joint position that keeps the 2035 zero-exhaust objective intact.
  • They propose conditional flexibilities tied to European production, including super-credits or heavier weighting for electric cars that meet a minimum share of EU-made components.
  • Both governments oppose giving plug-in hybrids favorable treatment after 2035, citing an EU analysis showing real-world emissions roughly 3.5 times higher than test results.
  • Germany’s auto industry and Chancellor Friedrich Merz advocate for hybrid allowances and the use of e-fuels and bio-gasoline, while IG Metall and SPD figures urge pragmatic transition measures to protect jobs.
  • The VDA warns that content requirements risk provoking trade retaliation, and the Commission plans to publish its review by year-end before negotiations with EU governments and the European Parliament.