Franco-German Car Deal Criticized by EU Climate Chief

Welcome to the Brussels Edition. I’m John Ainger, Bloomberg climate and energy reporter, bringing you the latest from the EU. Make sure you’re signed up.

German Chancellor Friedrich Merz lauded a deal struck with France on the future of the automotive industry earlier this month as condemning an effective EU combustion engine ban to “history.”

However, the man responsible for overseeing emissions rules for carmakers fears the pact risks doing more harm than good for the very industry it is aiming to protect.Wopke Hoekstra, the EU’s climate chief, told me in an interview today that a huge uptick in EV sales since the war in Iran shows that staying the course on electrification is vital not just for the climate, but helping Europe’s embattled automakers keep pace with Chinese competition.

“I’m not impressed by the intellectual logic” of the Franco-German deal, he said. “I seriously doubt whether it is wise.”

His comments underscore the key dilemma at the heart of European climate policy: how to fight global warming, while not surrendering key industries to other corners of the world. For Hoekstra, who has managed to largely keep the green deal intact, the two go hand-in-hand. And he said he welcomed the “Made in Europe” criteria outlined by the Franco-German deal.

Even so, the EU is in line for an intense few months of discussions over the future of its climate policy. Not only is it negotiating rules on cars, it’s also trying to find a deal among member states on its carbon market, which has come under heavy criticism from countries like the Czech Republic, who say that it is raising costs for consumers.Hoekstra said a deal on that may not be possible until after this year, while additional rules setting the future of climate policy beyond 2030 may also be pushed back.

The Latest

At least 64 people have died in a collision between two high-speed trains south of Madrid.Ukrainian President Volodymyr Zelenskyy urged US Defense Secretary Pete Hegseth to sign deals ordering the transfer of Patriot air-defense missiles from third countries to Kyiv before winter.BNP Paribas reported a surge in revenue from equities trading and announced a new share buyback, as the French lender played down concerns about recent political and bond turmoil in France.Turkey’s market authorities canceled Tera Yatirim Menkul Degerler’s license and suspended trading on its stock, part of a continued dismantling of the brokerage at the heart of the country’s fund crisis.UBS Chief Executive Officer Sergio Ermotti issued an unusually clear threat to relocate the bank as he stepped up his rhetoric over Switzerland’s plans to make it hold billions of dollars in extra capital.

Seen and Heard on Bloomberg

Deutsche Bank posted fixed-income trading revenue that outperformed Wall Street banks in the third quarter, showing how the lender’s effort to grow the business is paying off. The metric fell 3% to €2.39 billion ($2.7 billion) in the period, compared to an average of 5% for the major US banks. Chief Financial Officer Raja Akram described the result as a “solid” performance on Bloomberg TV. He added that the gradual expansion of the unit is set to continue as the firm seeks to build elements including credit trading and the metals business. “There are a few things that we we would like to add to our repertoire,” Akram told Oliver Crook.

Chart of the Day

Santander posted third-quarter net income that was in line with analysts estimates, as it consolidated a major acquisition in the US for the first time. Spain’s biggest lender reported profit of €3.43 billion ($3.81 billion) for the period and said it’s “comfortably on track to meet” 2026 targets. Chief Financial Officer José García Cantera told Bloomberg in an interview this morning that Brazil remains “strategically important” for the bank, and this week’s election results “will not change our outlook for the country and the bank.”

Coming up

Portuguese parliament votes on budget this afternoonAirbus earnings later WednesdaySociete Generale results tomorrowEU energy ministers meet in Luxembourg tomorrow to discuss Winter preparations

Final Thought

Rome’s mayor has ruled out a Venice-like entrance fee for tourists, despite surging visitor numbers. Rome can best preserve the character of its 3,000-year-old city center with measures like restricting short-term rentals, rather than by increasing taxes imposed on visitors, mayor Roberto Gualtieri said. “It would make no sense to introduce here an entry ticket to the city, like they did in Venice,” Gualtieri said in an interview with Bloomberg for the video podcast Quello che il potere non dice. The Eternal City attracted a record number of tourists in 2025, according to data supplied by the city. Arrivals totaled 22.9 million, including 12 million from abroad.