The EU states have spoken out in favor of weaker requirements for the Supply Chain Act than envisaged by the Commission. This emerges from a decision published by the Czech Council Presidency on Thursday. The EU supply chain law is intended to ensure that large companies do not make any profits from child or forced labor or environmental damage in their international supply chains.
Specifically, the position of the EU countries provides for a longer grace period for certain companies. In the first year in which companies are to comply with the requirements, only EU companies that generate annual sales of more than 300 million euros worldwide and have more than 1000 employees would be affected. For companies from third countries, the rule would initially apply to EU sales of 300 million euros.
The regulations will then also apply to smaller companies. From the outset, the Commission proposal envisages hurdles half as high as desired by the Member States. Both proposals provide for stricter rules for companies operating in sectors with a higher risk of exploitation and environmental degradation. According to earlier information from the EU Commission, around 13,000 EU companies and 4,000 companies from third countries would be affected by the new rules. Before the guidelines can come into force, the European Parliament and EU states must agree on a compromise. (dpa)