German chancellor Gerhard Schroeder reportedly has warned of potential problems in Berlin’s relationship with Paris if France were to discriminate against German automakers.

“If there was discrimination of the German car industry through demands on the one hand and penalties on the other hand, this could not only violate the European idea, but cause problems in German-French cooperation,” Schroeder said, according to Reuters.

The report said he spoke on the sidelines of an automobile forum in Stuttgart after the head of the German car manufacturers’ association said he believed a French luxury car tax plan represented “de facto” discrimination against German carmakers.