Germany blocked a European Union agreement on capping car carbon emissions on June 28 because the deal coul cost jobs and harm its mammoth automotive industry.

Germany is normally seen as an environmental champion and, as a result, Merkel's blunt admission that its industrial base would have to take precedence over green concerns has shocked observers.

"At a time when we're spending days sitting here talking about employment, we must pay attention not to weaken our own ind...