France, Oct. 16 -- The deal between Europe's two economic powerhouses aims to cut carbon emissions and support the development and manufacture of electric cars in Europe, the two countries said in a joint statement published on Friday.

"Our shared amibition is clear: to successfully transform our automotive industry while maintaining our climate ambition and ensuring that the cars of the future are produced in Europe," it said.

The deal also provides "concrete incentives for investment, research and development, European production and resilient supply chains".

The agreement still needs the backing of other EU states and the European Parliament to become law, but is expected to shape the continent's future policy.

European car manufac...