At the conclusion of the European Council Summit in Brussels, Chancellor Friedrich Merz gave a positive assessment. The European Union is making progress on key issues, particularly in the area of competitiveness. Merz emphasised that only an “economically strong and sovereign Europe” could hold its own on the world stage. Support was given to a Franco-German initiative on European trade policy, which would enable the EU to respond more swiftly to global distortions of competition in future. With a view to the negotiations on the EU budget from 2028 onwards, Merz called for greater financial restraint. Given the need for fiscal consolidation in the Member States, an increase of around 50 per cent in the European budget would not be appropriate.

The Federal Chancellor regarded the agreement reached with France on the future of the European automotive industry as a further success. The agreement combines a commitment to climate targets with greater technology neutrality and a stronger focus on alternative fuels. The targets for 2035 are to be met, whilst at the same time leaving the door open to different pathways to carbon neutrality. 

Key points at a glance 

• Competition and the single market: Federal Chancellor Merz placed Europe’s economic strength at the heart of the summit, because: “Only an economically strong and sovereign Europe can hold its own in today’s world.” At the same time, he acknowledged that the targets set so far had not yet been fully achieved. That is why the Heads of State or Government will once again discuss progress on competitiveness and the single market early next year.
• EU Budget: The debate on the EU’s future Multiannual Financial Framework (MFF) took up a significant amount of time. Federal Chancellor Friedrich Merz made it clear that Germany is one of the countries calling for a significant cap on spending. Given the need for Member States to make savings, he felt it was unacceptable “for the European budget to rise by around 50 per cent at the same time”. He also highlighted the significant differences of opinion between the Member States and left open the question of whether an agreement could be reached by the end of the year.
• Trade and Competition: The Federal Chancellor described the broad support for a Franco-German initiative on European trade policy as a significant step forward. The European Commission should be able to respond more quickly to global imbalances and distortions of competition in future. He expressed his delight at the “truly unanimous, across-the-board support” for the proposals put forward by Germany and France. The Commission must now draw up the necessary legal framework.
• Automotive Industry: Federal Chancellor Merz highlighted, in particular, the agreement reached with France on the future of the European automotive industry. The agreement combines a commitment to climate targets with a greater openness towards different propulsion technologies and alternative fuels. Europe must not commit itself to a single technology; rather, the aim must be “to achieve a CO₂-free future using other technologies as well”. He described the inclusion of biofuels as a “good decision” that enjoys broad support.

Further information on the Franco-German agreement regarding the future of the European automotive industry can be found in the joint press release.

Read the transcript of the press conference here (in German).