Franco-German Accord on Cars and ‘Made in Europe’ Imminent, Says EU Industry Chief

Stéphane Séjourné, the European Union's industry chief, announced that France and Germany are on the verge of concluding a major deal on automotive policy and "Made in Europe" standards. Speaking at POLITICO's Competitiveness Summit in Paris, Séjourné stated that an agreement between the bloc's two biggest economies is expected within "hours or days." The upcoming compromise is specifically designed to overcome a legislative deadlock in the European Parliament concerning the Industrial Acceleration Act (IAA), where negotiations have stalled amid competing political priorities.

Industrial policy across the 27-nation bloc has long been caught between French pushes for local content requirements and German concerns over trade competitiveness and supply chains. For European manufacturers, carmakers, and consumers, the resolution of this debate will determine how aggressively the EU favors domestic production in its industrial strategy. When legislative proposals grind to a halt in Brussels, an agreement between Paris and Berlin usually provides the indispensable template that coaxing the rest of the institution back to the table requires.

While the EU legislative process is formally run through democratic negotiations between the European Parliament and member states in the Council, informal bilateral handshakes often serve as the real engine of compromise. Séjourné’s announcement illustrates a classic Brussels phenomenon: publicly framing a Franco-German consensus as an imminent reality to apply gentle pressure on deadlocked lawmakers in the Parliament. It is a reminder that in the EU ecosystem, when formal parliamentary procedures produce a stalemate, institutional tradition dictates waiting for Paris and Berlin to draft the compromise first.

Once Paris and Berlin formally unveil their joint position in the coming days, the focus will shift back to the European Parliament. Lawmakers and committee negotiators handling the IAA file will examine the Franco-German compromise to determine whether it offers a viable path to unblock negotiations and move the legislation forward toward a final vote.