Shortly before, the FDP vetoed the planned EU supply chain directive. This means that the Brussels plans as a whole are in jeopardy. The SPD is trying to solve the blockade – and warns of sensitive consequences for the German economy.
Some statements age extremely badly and faster than expected. A current example: He could have easily done without it, said a self-critical Olaf Scholz just a few days ago, but unfortunately the government has “succeeded too rarely in making important decisions without lengthy public disputes.” The Chancellor was asked about the coalition’s appearance, which we know could be better. But Scholz was confident: the traffic light partners had now largely negotiated the central issues. Now it’s getting less rowdy, I guess that’s what it means.
The statements were made about a week ago. The traffic light coalition is already waging a public debate again. And this time it is even questionable whether there will even be a resolution at the end of this dispute.
Shortly before, the FDP rejected Germany’s approval of the EU supply chain law. This could mean that the project as a whole could be on the brink. If the coalition cannot agree on a common position, Germany would have to abstain from the vote in Brussels – which would ultimately be seen as a “no” vote. The necessary majority for the EU plans is therefore questionable. It is feared that a negative attitude from Germany could also cause other countries not to agree to the plans. France should also be skeptical about the law. A decision on the directive should be made as early as next Friday.
Large business associations are enthusiastic about this prospect, which is enraging coalition partners. The SPD in particular is sharply critical of the Liberals’ blockade stance.
“I expect Germany to agree to the European supply chain law and an end to the blockade by the FDP,” said SPD General Secretary Kevin Kühnert star. “Only then will there be a level playing field for everyone in the future.” Germany has a supply chain law, the other EU states do not. “But in a few days the federal government will have the opportunity to enforce equal rights and obligations for all market participants.” He could not imagine that market-oriented liberals would want to bear responsibility for the fight against exploitation becoming a disadvantage in international competition.
The SPD played a key role in launching the German supply chain law and campaigned vigorously for a European directive. It is intended to hold large companies accountable if they profit from child or forced labor outside the EU. Larger companies should also be more obliged to comply with the Paris climate goals to limit global warming. Anyone who does not comply with this must expect fines or lawsuits. Negotiations on this have been going on for almost two years.
But shortly before the final consultations in Brussels, the FDP-led ministries of justice and finance opposed the plans. In a letter from ministers Marco Buschmann and Christian Lindner regarding the latest status of negotiations, it is stated that both houses “cannot support the result”.
The FDP ministers criticize that the EU law will lead to companies being significantly liable under civil law for breaches of duty in the supply chain. In addition, significantly more companies would be affected than under the current German legal situation. The construction sector should also be classified as a so-called risk sector. This could be a threat to the existence of small and medium-sized companies in this area in particular. “In our opinion, many companies simply do not have the appropriate human and financial resources,” argue Buschmann and Lindner. “It is to be feared that even less will be built in Germany.”
Justice Minister Buschmann told the German Press Agency that “the protection of human rights is part of the EU’s self-image.” He therefore fully supports the aim of the directive to ensure better protection of human rights and the environment in the supply chains of European companies. However, this goal should not lead to a “self-strangulation of our business location”. “Our concerns have not been allayed; the risks for the European and German economies outweigh them.” In the Council of the European Union, this resulted in Germany abstaining, which ultimately seemed like a “no” vote.
SPD juniors criticize “neoliberal narrow-mindedness”
For Philipp Türmer, however, the blockade shows once again “what a child the FDP is.” The chairman of the Jusos – the SPD youth organization – accuses it of “neoliberal narrow-mindedness”.
“Instead of ensuring fair and equal competitive conditions throughout Europe, it is better to encourage child labor and environmental destruction,” said Türmer star. Buschmann and Lindner would accept that “the image of Germany, which has been cracked due to their party friend Volker Wissing, will suffer further cracks in European negotiations.” Last March, the FDP transport minister delayed the EU compromise to phase out combustion engines by blocking it, thereby causing irritation in Brussels. “A party that appears so ignorant towards its partners in Europe,” said Türmer, “should not be surprised if it receives a black eye in the next European elections.” The Juso boss called on “the two yellow blockade ministers” to give in.
In order to appease the Liberals and still make an agreement possible, Federal Labor Minister Hubertus Heil (SPD) proposed a compromise proposal on Thursday. With his new proposals he now wants to “build bridges” and reduce bureaucratic burdens, said Heil.
With his proposals, Heil wants to change German supply chain regulation. Companies’ annual reporting obligations are to be suspended by the German Supply Chain Act. According to Heil’s key points, around 3,000 companies would be affected. Today, companies must regularly publish a report on the fulfillment of their due diligence obligations against child labor and human rights, which is checked by the Federal Office of Economics and Export Control.
Greater consideration should also be given if there is a lower level of legal enforcement in a country in which products are manufactured for the German market. There should be more space for initiatives from entire sectors that can relieve the burden on individual companies.
From the SPD General Secretary’s point of view, Heil’s package would address and also refute many concerns. “It stipulates that the European Supply Chain Act does not create any new reporting obligations for German companies,” emphasized Kühnert to the star. The risk assessment approach has also been strengthened, according to which companies should focus their attention primarily on the most difficult parts of a supply chain. “Clothing from Bangladesh therefore deserves more attention than pasta from Italy,” says Kühnert in a nutshell.
He appealed to the FDP to reconsider its position. “If Germany does not agree in the coming week, then that would be a decision that would be detrimental to Germany as a location in the medium and long term,” said the SPD General Secretary. Companies would possibly strengthen other European locations or, in the worst case, give up German locations. A negative attitude from Germany is therefore “neither in the interest of our economy nor in the interest of reducing bureaucracy with a sense of proportion,” said Kühnert.
The Greens in Berlin and Brussels also reacted to the blockade with incomprehension. “A compromise is part of democracy,” explained Katharina Dröge, the leader of the Green Party in the Bundestag. It is good that Labor Minister Heil has once again made suggestions that will relieve the burden on companies. “In doing so, he addresses the concerns of the FDP. Germany should now also agree to the European supply chain law.”
Green MEP Anna Cavazzini, who is also chairwoman of the European Parliament’s Consumer Protection Committee, said on Deutschlandfunk that the regulations had been negotiated with all member states over several years. It is therefore strange if the federal government backs out at the last minute. This puts Germany’s reputation as a reliable negotiating partner at risk.