France and Germany agree on provisional auto package

France and Germany have agreed on a provisional package that would ease proposed European Union car-emissions requirements and allow Britain to qualify conditionally under automotive Made in Europe rules. The plan is intended to support the region’s automotive industry, but it still needs backing from other EU member states and the European Parliament to become law. Under the draft, manufacturers would have to reduce exhaust emissions from new cars by 90% by 2035, measured against 2021 levels. It would remove a requirement in the current proposal for manufacturers to compensate for the remaining emissions, including through measures such as using low-carbon steel or alternative fuels. The change would make the proposed target less restrictive for automakers, while retaining the 90% reduction goal. The package would also define automotive Made in Europe eligibility as covering the EU’s 27 member states, with an opt-in for Britain and some other European partners under conditions. Those conditions include reciprocity and alignment with EU rules on investment from third countries and trade-protection measures. The precise final terms for partner participation have not been...