France, Germany reach deal over car emissions

France and Germany reached an agreement on Monday that ends their months-long dispute over EU-wide plans to reduce car emissions, German Chancellor Angela Merkel said.

STRAUBING (GERMANY): France and Germany reached an agreement on Monday that ends their months-long dispute over EU-wide plans to reduce car emissions, German Chancellor Angela Merkel said.

"We have made an important breakthrough on this subject where initially our positions were very, very far apart," Merkel said at a Franco-German summit in the southern German town of Straubing.

"I am very happy to be able to say that we both support the EU goal of 120 grammes per kilometre on all new EU cars by 2012."

Merkel said the two neighbouring nations had agreed on "a substantial phasing-in period" for the new emissions limit.

She said though it would apply from 2012 to all new cars produced, under the deal reached with Sarkozy it would only gradually be enforced with regard to existing models.

"The details will still have to be worked out by our environmental ministers but we believe that this is a giant step ahead.
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"We have proven again that France and Germany can work together. We have agreed to work together."

France and Germany have for months battled to resolve their row over the emissions and had not been expected to announce a deal on Monday.

A German government spokesman late last week ruled out a breakthrough, saying ongoing talks were "difficult and complicated in detail."

Germany had opposed the EU plan as vehicles made by German firms like BMW, Daimler and Porsche tend to be larger, luxury vehicles with greater emissions.
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France, however, backed the legislation as French carmakers like Peugeot and Renault are more focused on the market for smaller and therefore less polluting cars.
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