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Today’s Brief

A Peshawar school roof collapses

Zelensky resumes refinery strikes as Peshawar school collapse kills dozens of children

Volodymyr Zelensky said Ukraine has resumed strikes on Russian refineries after a roughly three-day US-requested pause, as Kyiv counted more than 850 Shahed drones between midnight and 9am on 15 October. In Peshawar, a private-school roof collapsed onto classrooms, killing at least 32 children and a teacher in the latest hospital count.

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  • Channel Tunnel bus and train collision

    Five of the 19 people injured at the Channel Tunnel's French entrance are in critical condition, the local prefecture says. None is in mortal danger.

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    Romanian emergency teams continue searching for seven missing sailors after suspected drone strikes hit the tanker Wine Trader in Romanian waters.

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    Military planners include the Pickaxe Mountain site among potential targets for GBU-43/B MOAB strikes if combat resumes, according to updated reports.

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European Union · Updated 1m ago

The ageing Union's economy

Summit day brings a routine Eurostat output release and reiterated positions on budget and energy, with no decision yet.

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Business·2h ago

Germany and France provisionally agree to soften 2035 combustion engine phase-out

The provisional deal would let more combustion cars be sold after 2035, with manufacturers no longer offsetting the last 10% of their CO2 emissions under the draft.

A provisional Franco-German position

Germany and France have provisionally agreed a joint position that would further soften the planned end of combustion engine sales in the EU by 2035, AFP reported on Thursday, 15 October, citing diplomatic sources. A government spokesperson told AFP the agreement was on the home straight, though final approval from Germany was still outstanding. The arrangement is meant to settle a dispute that threatened to block two legislative procedures in Brussels. Under current plans, the fleet CO2 limits that set how much carbon dioxide a manufacturer's new cars may emit on average each year fall to zero by 2035. The European Commission has instead proposed cutting those limits by 90% compared with 2021, with the remaining emissions offset elsewhere. SPIEGEL has seen the preliminary agreement paper, which sets out a negotiating package for the two governments.

What the draft would change

Manufacturers would still cut their CO2 emissions by 90% by 2035 under the draft, but the remaining 10% would not be offset, so more combustion cars could be sold after 2035. From 2028, state purchase premiums, leasing support and public contracts would go only to vehicles assembled in the EU or the UK, with at least 70% of component value from European production. Battery content would be phased in at 10% in 2028 and 2029, rising to 80% in 2032, a rule meant to shield domestic industry from Asian competition. The draft also gives carmakers more room, since overruns in 2030 could be offset by savings in 2031 and CO2 credits could build up from 2029.

Required European share of batteries under the draft, by year · %
2028
10
2029
10
2032
80
2028
10 %
2029
10 %
2032
80 %

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How the deal was built

Handelsblatt reported that Chancellor Friedrich Merz and President Emmanuel Macron agreed the outlines of a compromise in early October, with France easing on climate rules in return for German support on industrial demands. According to Handelsblatt, Merz pushed for a deeper softening of the 2035 phase-out and secured that member states will no longer be obliged to push electrification of large company car fleets through binding quotas. Macron, in turn, won stricter 'made in Europe' rules, under which state purchase premiums and public contracts would go only to cars made in Europe. The timeline below traces the steps reported so far.

Steps toward the Franco-German car CO2 compromise
  1. Early October 2026Merz and Macron reportedly agree the outlines of a compromise, according to Handelsblatt
  2. Oct 14, 2026SPD ministers send Merz a letter offering to cut the reduction target from 100% to 95%
  3. Oct 15, 2026AFP reports a provisional Franco-German common position, with German final approval pending

Britain and China

The draft counts Britain as part of the 'made in Europe' zone, according to AFP's reading of the document. Handelsblatt reports that British vehicles would qualify only if London aligns its trade protection instruments with EU standards. The Financial Times reports that including Britain could be tied to conditions on trade policy toward China. The point matters for carmakers because many build vehicles and components across borders, and German groups run large production sites in Britain.

Pressure inside Berlin's coalition

On Wednesday, 14 October, Environment Minister Carsten Schneider wrote to Chancellor Merz on behalf of himself and Finance Minister Lars Klingbeil, both SPD, offering to lower the new-car CO2 reduction target from 100% to 95%. Another 5% could be compensated if green and recycled steel made in Europe is used in vehicles. The ministers also want the state to act as an anchor customer for climate-friendly products, with a rising share of over 25% green steel in public tenders. The letter, which Reuters saw on Thursday, sets a firm limit on the offer.

We reject further compensation below 90 percent.

Carsten Schneider

The letter says the offer is meant to make an agreement with the French government possible, and the ministers tie their consent to these industrial demands.

What remains open

The Franco-German position is not a final EU decision, because the EU institutions must still decide on changes to the bloc's CO2 rules. Germany's final approval is still outstanding, and the SPD letter sets out the conditions attached to the ministers' support. Whether Brussels accepts the Franco-German draft remains unclear, as does the final wording. Spiegel and AFP both describe the paper as preliminary, so the details could still change.

Berlin · Paris · Brussels
Friedrich MerzEmmanuel MacronCarsten SchneiderLars Klingbeil
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Emmanuel MacronBerlinBrusselsCarsten SchneiderFriedrich MerzLars KlingbeilParisEuropean Union

7 sources

  • Verbrenner-Aus: Paris und Berlin für weitere Aufweichung
    newsORF.at·2h ago
  • Verbrenner-Aus 2035: Deutschland und Frankreich einigen sich auf Lockerung
    Berliner Zeitung·3h ago
  • EU-Gipfel: Mehr Verbrenner, weniger China - neue Details zum Autopakt
    Handelsblatt·3h ago
  • Friedrich Merz und Emmanuel Macron einigen sich auf Aufweichung von Verbrenner-Aus
    Spiegel Online·3h ago
  • Merz und Macron einigen sich auf neuen EU-Autopakt
    Focus·3h ago
  • Laut Diplomatenkreisen: Berlin und Paris einigen sich auf weitere Aufweichung von Verbrenner-Aus
    RP Online·3h ago
  • Bundespolitik: SPD-Minister bieten Merz Verbrenner-Kompromiss an
    Handelsblatt·6h ago

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