Good morning from Berlin,

After a meeting with carmakers and trade union representatives on Monday, German Economy Minister Robert Habeck (Greens) joined Italy in suggesting bringing forward a planned 2026 revision of the EU’s CO2 car emission rules.

These rules suggest that carmakers should reduce new cars’ average CO2 emissions by 15% by 2025, 55% by 2030 and 100% by 2035, notably by increasing their production of electric cars.

If the initiative goes through, it would allow changes to carmakers’ current 2025 deadline to reduce the average emissions of their newly sold cars by 15%, and the industry would avoid multiple billion-euro fines.

However, unlike Rome, Habeck defended the EU’s de facto ban on new petrol and diesel cars as of 2035.  

For his part, leader of conservative opposition CDU (EPP) Friedrich Merz – who eyes Germany’s chancellorship in the 2025 elections and will visit Commission President Ursula von der Leyen next week - said he was in favour of abandoning the de facto ban on combustion engine cars as of 2035.

Jonathan Packroff has all the details.

In Stockholm, the sluggish demand for electric cars and the EU’s current car emission rules resulted in Swedish battery maker Northvolt announcing on Monday that it will lay off almost a quarter of its workforce.  

Charles Szumski digs deeper.

Meanwhile, the EU-China trade row – which started with the clash on electric vehicles – continues.

Ukraine’s Western partners need to step up in providing air defences for Kyiv’s war effort, as Russia is likely to try to knock out the country’s energy infrastructure before winter, EU chief diplomat Josep Borrell said on Monday, Alexandra Brzozowski reports from New York. In addition, the Europeans made a diplomatic push amid deteriorating relations with Iran.

Moreover, a new report found that EU member states struggle implementing human rights rulings. 

Last but not least, the EU auditors called on Europe to step up support for the organic market.

BERLIN

Germany’s liberal FDP party is ready to quit the coalition government if it fails to agree to significant policy improvements, FDP leader and Finance Minister Christian Lindner suggested on Monday after a string of disastrous regional elections for his party. Read more.

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PARIS

The four French ministers to watch out for in Brussels. France’s new government was finally announced over the weekend after an unprecedented 67-day wait, but its survival is already in question as urgent files with significant EU repercussions pile up, and a potential no-confidence vote is on the radar. Read more.

ROME

Italian Prime Minister Giorgia Meloni was presented with the Global Citizen Award by billionaire Trump supporter Elon Musk at her request on Monday, a decision widely interpreted by Italian media as a possible step towards rekindling ties with the Republican candidate. Read more.

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MADRID

Spanish government warns of serious consequences should PP topple 2025 budget. If the centre-right Partido Popular rejects the draft 2025 budget, the country could lose €12 billion for regions and local councils, Digital Transformation and Civil Service Minister Óscar López warned on Monday. Read more.

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LISBON

Portugal’s public debt for 2023 lower than estimated. Portugal’s public debt as a percentage of GDP is estimated to have fallen to 97.9%, a revision from the 99.1% calculated in April, according to data released by the National Statistics Institute (INE) on Monday. Read more.

LONDON

The UK wants Europe’s carbon. The UK wants to host Europe’s captured CO2 in its new storage infrastructure, but post-Brexit regulatory challenges complicate the collaboration with the EU. Read more.

WARSAW

EU Commission ready to activate Solidarity Fund for flood-stricken countries. The European Commission is ready to activate the EU Solidarity Fund for the regions affected by the recent floods, the Commission’s press service told Euractiv Poland. Read more.

SOFIA

Ekaterina Zaharieva, the Bulgarian pick for European Commission President Ursula von der Leyen’s Commission, did not answer Euractiv’s questions about her past despite reports that she played a controversial role at various times in her capacity as a cabinet minister. Read more.

• EU: General Affairs Council convenes to discuss rule of law, prepare October Council meeting, and more;
• UN General Assembly agenda highlights include Summit of the future, bilateral meetings, and more;
• Parliament President Roberta Metsola attends opening session of the United Nations General Assembly;
• Commission President Ursula von der Leyen participates in 79th United Nations General Assembly opening; Delivers opening remarks at Global Renewables Summit; Co-hosts event on carbon-pricing, together with Prime Minister of Canada Justin Trudeau;
• High Representative for Foreign Affairs and Security Policy Josep Borrell delivers keynote speech at high-level UN Security Council meeting on Ukraine;

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[Edited by Sarantis Michalopoulos, Daniel Eck, Martina Monti, Alice Taylor-Braçe]