A coalition meeting is underway between German Chancellor Merz and his conservative CDU, along with their partners, the center-left SPD party. The topic? Tomorrow's auto summit and the fate of the combustion engine ban. A thread /1

Europe's automakers score reprieve in U.S.-EU trade deal with car tariffs lowered to 15 percent, the same rate as Japan's automakers. Here's what it means for the sector. From me for pro subscribers: pro.politico.eu/news/202544

Trump railed against the EU’s tariffs on cars. “We don’t sell cars into Europe. If we want to sell cars in Europe, we’re not allowed to,” he (incorrectly) said. The EU imposes a 10% tariff on cars but the bulk of the models imported from the U.S. are made by German automakers BMW and Mercedes.

Scoop from yours truly: The EU is ready to align its autonomous driving standards with the U.S. to make a deal on trade with Trump. Hard to overstate how dramatic a shift this is. Remember - the argument over car standards helped end TTIP talks in 2013. www.politico.eu/article/eu-s...

⚠️ NEW: EU countries want to let carmakers use recycled plastic from outside the EU to meet future recycled content targets. Otherwise, it would breach international trade rules, they warn. more here (€): pro.politico.eu/news/198504 @jordyndahl.bsky.social

Members of the European Parliament were offered special pouches to protect digital devices from espionage and tampering for a visit to Hungary this week, a sign of rising spying fears within Europe.

It's not your imagination: Brussels is going to hell in a handbasket. Nine months after the election, a government is still not formed and crime is on the rise. My colleague @hannecl.bsky.social explains in her must read story www.politico.eu/article/brus...

Even bigger than that - selling 80% of entire subsidiary with 43 ports

Tesla's sales are crating across Europe in response to some of Elon Musk's remarks. But those declining sales is going to impact another lucrative revenue stream for Tesla: regulatory credits. In 2024 alone, it made $2.76 billion on emissions deals. My story: www.politico.eu/article/tesl...

I got a hold of a draft of the Commission's Automotive Action Plan last night. It left much to be desired from automakers that say they need relief from this year's emission targets w/the draft having a massive placeholder where details should be. More for subscribers: pro.politico.eu/news/194794

France is still trying to find a "blocking" minority in the EU to prevent Brussels from finalizing a landmark trade deal with Latin American countries that would hurt French farmers, President Emmanuel Macron said on Saturday.

Under the law used to fund DOGE, it should be subject to the same open-records laws that cover most federal agencies, such as the State Department. "However, DOGE has refused to respond to Freedom of Information Act requests, saying it operates with executive privileges."

Merz is set to become Germany's next chancellor after Sunday's elections. He'll inherit an economic crisis that is being fueled by the auto sector. The industries woes come down to 3 main issues: China, high energy costs and a looming trade war. My story 👇

Von der Leyen is on her way to New Dehli to meet with PM Modi for the Trade & Tech Council on Feb 28, We got our hands on the draft joint statement and the EU and India are set to inch closer on trade and EVs. With @camgijs.bsky.social, @mathieupollet.bsky.social www.politico.eu/article/eu-a...

EU trade chief Maroš Šefčovič is taking a suitcase full of peace offerings to Washington to try and avert a transatlantic trade war: Gas, cars, guns ... and more. Worth your time, from @camgijs.bsky.social @gabrielgavin.bsky.social and @jordyndahl.bsky.social

For subscribers: We got our hands on the Clean Industrial Deal draft and it has echoes of Beijing’s policy when the European Commission considers the bloc’s new requirements for foreign investments in cars and batteries pro.politico.eu/news/194238

President Trump has so far gone much easier on China than he promised on the campaign trail. Why? As I wrote in November, his key advisor Elon Musk has substantial China ties, which @pkrugman.bsky.social cites in his economic breakdown of US-China relations paulkrugman.substack.com/p/why-has-tr...

President Trump promised to enact reciprocal tariffs, meaning raising car import taxes to match the EU's 10%. That spells trouble for Volkswagen and its subsidiaries Porsche and Audi. My story with @busvine.bsky.social @camgijs.bsky.social www.politico.eu/article/euro...

Donald Trump has been sworn in as the 47th US president.

Initial thoughts on inauguration watching former presidents/spouses walking in: 1. Hillary does not get enough credit for her acting skills. She pulls off looking happy and all smiles 2. Obama has no interest in such pageantry. He's attending alone - no Michelle in sight.

My aunt was diagnosed with ALS 1.5 years ago. As an eternal optimist, most other content just brought her down. But watching Brooke Eby's progress through her humor has helped my aunt (and others) in so many ways www.nytimes.com/2025/01/02/w...

Alliance countries need to return to Cold War-era defense budgets to fend off Russia, NATO Secretary-General Mark Rutte said today.

#1 Doer: Ursula von der Leyen The EU was once a union of economic powerhouses. Now, as France and Germany tackle crises at home, Commission chief von der Leyen looks like the only adult left to lead Europe. Read her full #POLITICO28 profile: www.politico.eu/list/politic...

Defense Commissioner Andrius Kubilius wants the EU’s next seven-year budget to include about €100 billion for defense + defense spending shouldn’t be included in deficitcalculation With @jacopobarigazzi.bsky.social, @joshposaner.bsky.social, @jancienski.bsky.social www.politico.eu/article/kubi...

I went on the BBC World Service to discuss Volkswagen finally exiting Xinjiang and why its workers are going on strike this week. You can find out more here (at ~26:30): www.bbc.co.uk/sounds/play/...

Stellantis CEO Carlos Tavares is out. The board accepted his resignation tonight - a full year before his tenure was supposed to end. That they would move up his departure and pay to break his contract underscores the crisis the automaker is facing. (I’m holding out hope for a 3rd Carlos tho)

France, Poland, Austria and Ireland now oppose the Mercosur trade deal. If Italy flips, it’s game over … again

I got a hold of Italy's strategy to make Europe's automotive sector competitive. The asks are familiar and unsurprising: an earlier review of the 2035 ban, no fines, "tech neutrality" What is surprising is the countries it now has on board. More here pro.politico.eu/news/190103

Europe needs to take more risks, spend more, be faster and cut bureaucracy to win the new global arms race, a top NATO commander told us. 🔗 trib.al/jmrR8uN

Europe’s hopes for a domestic battery champion to compete with the Chinese giants is dashed after Northvolt’s cofounder resigned and the firm filed for bankruptcy in the U.S. The Chinese are baffled by EU lawmakers’ willingness to let Northvolt die. More here www.politico.eu/article/nort...

The content we’re all here for

Moscow is prepared to launch a wave of cyberattacks against NATO allies that could leave millions without power, according to a senior United Kingdom minister.

Elon Musk made his money in China, thanks to Tesla’s Shanghai factory. He’s pals with Chinese officials and has successfully lobbied for numerous exceptions for the EV company. This makes him a potential interlocutor between China and Trump over tariffs and the broader U.S.-China relationship 1/

Tesla, Trump and the China tariff clash Elon Musk needs good relations with China to keep pumping cash into Tesla, while Donald Trump wants to hit Beijing with tariffs. Via @jordyndahl.bsky.social www.politico.eu/article/tesl...

EPP leader Manfred Weber and members of parliament met for a closed door meeting with the bloc’s major auto CEOs. The group discussed next year’s emission targets that automakers must hit or face fines, along with the new Commission term. There’s lots to dive into on the latter.