Economic policy
There is still no EU majority for supply chain law
The FDP has made it clear that they will prevent anything that weakens the German economy, said Christian Dürr. photo
© Serhat Kocak/dpa
The planned EU supply chain law has once again failed to find a majority among the EU states – also due to resistance in the federal government. What happens next remains to be seen.
Germany abstained from voting in the Committee of Permanent Representatives of the Member States on Wednesday. This seems like a no vote in the committee. In the federal government, the FDP urged that Germany not agree. The Liberals fear, for example, that companies will withdraw from Europe for fear of bureaucracy and legal risks. Politicians from the SPD and the Greens, however, support the project. The disagreements led to an open exchange of blows in the traffic light coalition.
The law is intended to hold large companies accountable if they profit from child or forced labor outside the EU. Larger companies must also create a plan to ensure their business model and strategy are compatible with the Paris Agreement on climate change.
Germany already has a supply chain law. The planned EU version would go beyond its specifications. At EU level, it is stipulated that companies are liable for breaches of duty of care, which is excluded under German law. In addition, more companies should have been affected by the EU regulation than by the German law.