The Franco-German engine sets off by car

Emmanuel Macron and Friedrich Merz are attempting to revive the traditional Franco-German partnership. According to Politico, following the joint ministerial meetings held in Germany on 17 July, the leaders of the EU’s two largest economies have tasked their ministers for the Economy and Industry with negotiating a major deal to revitalise the European automotive sector and strengthen the ‘Made in Europe’ label. “We have been tasked with drawing up a comprehensive agreement on these issues. It would be excellent news if we could reach an agreement this autumn,” French Industry Minister Sébastien Martin told Politico Europe.

To reach an agreement, Germany is asking France to meet its demands for flexibility regarding the European ban on the sale of cars with internal combustion engines, scheduled for 2035 – a measure that Berlin considers too rigid at a time of profound crisis in its automotive sector. Paris, in return, is hoping for Berlin’s support for the Industrial Accelerator Act, the plan through which Brussels aims to strengthen the competitiveness of European industry in the face of growing pressure from Chinese competition and Trump-style industrial policies. Paris would like to introduce a preference for European products in public procurement and state aid, rewarding companies that manufacture within the EU and limiting exemptions for so-called ‘trusted partners’ as much as possible. Berlin, on the other hand, has so far advocated a more open approach, concerned that excessive protectionism could jeopardise trade relations with China and the United States. The aim is to reach a compromise ahead of the European Council in October. For Macron, there is also a strong political motivation: to speed up the process before the upcoming presidential elections. A victory for Marine Le Pen could, in fact, jeopardise the traditional Franco-German understanding that has been the driving force behind European integration.