Germany and France have reached an agreement on a joint economic agenda following a ministerial council meeting held in Toulon on Friday, with the stated goal of bolstering European competitiveness.
Ministers agreed on support for industry through lower energy prices, with particular focus on protecting carbon-intensive industries from disadvantage through the Carbon Border Adjustment Mechanism during export. Measures to stabilize prices within the EU Emissions Trading System were also discussed, acknowledging the system’s volume-based nature and the potential implications of increasing certificate supply on overall emissions. Exploration of additional incentives for sustainable products, including labels and sustainability criteria, is planned.
A summit dedicated to digital sovereignty, scheduled for November 18th, will aim to stimulate investment in key technologies. Artificial intelligence, quantum computing and space technology were highlighted as particularly important for Europe’s digital independence. Progress in digital infrastructure and cloud computing is a priority, with a focus on mitigating risks, alongside efforts to strengthen the European battery industry.
In the energy sector, the two countries will closely coordinate regarding the potential construction of a new electricity interconnector and will expedite the development of a Southwestern Hydrogen Corridor. A unified position is sought concerning the EU regulation on the carbon footprint of batteries.
Deepening the European single market is also a key focus, with plans to introduce a new pan-European company form. Germany and France will urge the EU Commission to simplify EU legislation, particularly seeking to reduce burdens on companies employing between 250 and 1,000 workers.
