EUROPE

Franco-German nuclear row blocks EU competitiveness deal

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Seven EU member states on Thursday called for a delay to a planned tightening of emissions limits for carmakers, arguing that it would harm Europe’s competitiveness.

Under current EU law, carmakers face fines if they exceed fleet limits for CO2 emissions, which are set to become stricter in 2025.

“Such fines would severely limit the sector’s ability to reinvest in innovation and development, thus damaging Europe’s competitiveness on the global stage,” says the report, which was presented at a ministerial meeting in Brussels.

The report is backed by Italy, Poland, Austria, Bulgaria, the Czech Republic, Romania, and Slovakia.

The countries called for a “more pragmatic” implementation timetable.

This proposal was met with reservations by the German representatives. When asked why Germany had not signed the document, State Secretary Bernhard Kluttig stated that it was important for the car industry to meet its targets.

Manfred Weber, leader of the centre-right European People’s Party (EPP) group in the European Parliament, told Focus magazine: “When it comes to jobs, as is currently the case, the state cannot ask companies to make significant payments.”

German Economy Minister Robert Habeck recently suggested that potential penalties in 2025 could be offset by quotas filled in 2026 and 2027.

However, Christian Dürr, parliamentary leader of Germany’s pro-business liberal Free Democrats (FDP), criticized the proposal, stating that the fleet limits would not be met in the coming years.

On the other hand, the Council failed to adopt a joint statement on competitiveness, as Germany and France could not agree on a statement regarding ‘clean’ technologies.

A key point of contention was the financing of nuclear technologies, which became a major obstacle in reaching an agreement.

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