EU countries agree on supply chain law
Published: Friday, Mar 15th 2024, 14:30
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The EU countries have agreed on a common supply chain law. The permanent representatives of the member states adopted the directive on Friday in Brussels with a qualified majority, as announced by the Belgian Council Presidency in the online service X.
The FDP had long resisted a tightening of existing German rules requiring companies to document that the products they import from third countries do not lead to child labor or environmental damage.
Germany, which abstained in the Committee of Permanent Representatives of the Member States, was thus outvoted. An abstention in the committee has the same effect as a "no" vote.
In the federal government, the FDP urged Germany not to 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, on the other hand, are in favor of the project.
Negotiators from the European Parliament and the EU member states had already agreed on a supply chain law in December. This is intended to hold large companies accountable if they profit from child or forced labor outside the EU, for example.
Larger companies must also draw up a plan to ensure that their business model and strategy are compatible with the Paris Agreement on climate change. The EU Parliament still has to approve the plan. A majority is considered likely here.
As the agreement reached in December initially failed to gain a sufficient majority among the EU member states, the plan was significantly weakened once again. Instead of the original plan, it will no longer apply to companies with more than 500 employees and a turnover of at least 150 million euros.
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