Still no majority among EU states for supply chain law
Published: Wednesday, Feb 28th 2024, 13:40
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The planned EU supply chain law still does not have a sufficient majority among the member states. This was announced by the Belgian Council Presidency on Wednesday.
"We now need to examine the state of play and see whether it is possible to address the concerns raised by the Member States in consultation with the European Parliament." It is therefore unclear whether the project will have to be renegotiated, although a compromise was actually reached between negotiators from the two institutions in December.
Germany abstained from voting in the Committee of Permanent Representatives of the Member States on Wednesday. In the committee, this has the effect of a "no" vote.
In the German 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. The disagreements had led to an open exchange of blows in the traffic light coalition.
Law would affect more companies
The EU Supply Chain Act stipulates, among other things, that large companies in the EU should be held responsible for child or forced labor as well as for environmental pollution by their international suppliers. In principle, the rules apply to companies with more than 500 employees and a turnover of at least 150 million euros.
Germany already has a supply chain law. The planned EU version would go beyond its requirements. Its adoption could also have a direct impact on several hundred companies in Switzerland.
©Keystone/SDA
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