European Parliament reaches compromise on automotive package

A centrist majority in the European Parliament, comprising the EPP, S&D, and Renew groups, has reached a provisional agreement on the European automotive package. This compromise follows intense negotiations and aligns closely with a recent bilateral agreement between France and Germany.

The new framework modifies previous ambitions regarding zero-emission targets for 2035. Key changes include the removal of mandatory electric vehicle quotas for large corporate fleets, which had been a major point of contention. Instead of legal obligations, the policy will shift toward "indicative national objectives."

In exchange for the flexibility granted to fleet operators, the agreement introduces stricter "Made in Europe" labeling requirements to bolster the competitiveness of the European automotive industry. The package also includes provisions for fleet greening, a simplification omnibus, and links to the Industrial Accelerator Act.