The European government is split in two parts. The European Commission is the regulatory arm while the European Union is the legislative body. The Commission is pushing for a 120 g//km fleet average limit by 2012, something that French and Italian companies are content with since they make a lot of smaller, diesel-powered cars. To appease the Germans, the EU wants to make the limit 125 g/km with a 2015 deadline. Apparently the politicians who comprise the EU parliament have decided that at least the German automakers need more time to meet the new requirements. Once the EC and EU do reach agreement on new regulations, it could be another two years before they are implemented.
[Source: Motor Authority]