French President Emmanuel Macron and German Chancellor Friedrich Merz are collaborating on a plan that tightens ‘Made in Europe’ regulations while proposing flexibility regarding the 2035 ban on internal combustion engines. Following a recent joint cabinet meeting, both nations have tasked their governments with drafting a deal that aligns EU industrial policy with automotive sector support. The negotiations, influenced by pressures on German automakers like Volkswagen, aim for a resolution by autumn, with the potential to include other EU nations. Key points of contention include the scope of ‘Made in Europe’ criteria and flexibility in the 2035 regulations.