The supply chain law is intended to prevent companies from profiting from child or forced labor. But there is still no majority for the project among the EU states – partly because Germany abstained.
There is still no majority among the EU states for the planned supply chain law. “Despite the Presidency’s efforts, the necessary support has not been achieved,” said the Belgian Presidency of the Council of Member States. “We must now examine the state of play and see whether it is possible to address the concerns raised by Member States in consultation with the European Parliament.”
This means it remains unclear whether the project needs to be renegotiated again, although there was actually already a compromise between negotiators from the two institutions in December. It is also questionable whether the law can be passed before the European elections at the beginning of June.
FDP blocks on the German side
The law is intended to hold large companies accountable if they profit from child or forced labor outside the EU. The federal government abstained because the FDP blocked German approval. In the committee that seems like a no vote.
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.
In some points, the draft goes beyond a supply chain law that has already been in force in Germany since last year. 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 would be affected by the EU regulation.
Kathrin Schmid, ARD Brussels, tagesschau, February 28, 2024 1:52 p.m