STRASBOURG (Chinaview) -- Germany, Europe's largest car manufacturer, would support the European Commission (EC)'s demands for a cut in carbon dioxide emissions, German Chancellor Angela Merkel said.

"Germany is going to have to accept compromises which won't be easy for us," Merkel told a plenary session of the European Parliament.

Last month, the executive office of the EU said Europe must cut greenhouse gas emissions by at least 20 percent below the 1990 levels by 2020 in order to limit global warming and prevent serious damage caused by climate change.

On Feb. 7, it tabled a proposal to set 130 grams/km as a cap for carbon dioxide emissions from new cars sold in Europe by 2012, the toughest CO2 emissions cap in the world. The proposal ignited furious opposition from the car industry across Europe.

Merkel, whose country holds the current EU presidency, also called on other EU countries to support the EC's proposal.

"Each member state must make its own contribution. It would be an error if we pursued only our own interests, and we're not going to make that error," she said.

Current levels of average car CO2 emissions are around 162 grams per kilometer in Europe.

The proposal needs approval from the 27 EU member states before it becomes a binding regulation across the bloc.

Germany is also the largest carbon polluter in the EU.