There is currently no sign of a majority among the EU states in favor of a European supply chain law. A vote on an agreement previously negotiated by negotiators was spontaneously postponed, as the Belgian EU Council Presidency announced. This is also because FDP-led ministries in Germany briefly announced that they would not agree to the project. The FDP explained that other EU countries also had concerns.
By the EU supply chain law Large companies should be held accountable if they profit from child or forced labor outside the Union. They should also be more committed to complying with the Paris climate goals. Germany already has a supply chain law. But the EU project also goes beyond the German requirements. This means it applies to more companies and provides more opportunities to take legal action against companies that do not comply with the requirements.
Argument at traffic lights
A week ago, the Liberal-led ministries of justice and finance opposed the plans. This meant that a majority in favor of the project was uncertain. It was assumed that Italy could have followed Germany’s behavior. The FDP’s behavior also caused disputes in the coalition. Foreign Minister Annalena Baerbock (Greens) criticized that Germany’s reliability in the EU was at stake. “If we break our word once given in Brussels, we will lose trust.”
The leader of the Green Party in the Bundestag, Katharina Dröge, said on Friday that the vote on such an important directive as the EU supply chain law was in jeopardy because of a lack of approval from Germany, which was “extremely bitter”. However, by postponing the vote, Germany still had a chance.
FDP wants improvements
The FDP emphasized that it was not alone in its criticism and called for changes. Party leader Christian Lindner wrote on the X platform, formerly Twitter, that the supply chain law would place a heavy burden on companies without secure progress for human rights and the environment. “The federal government’s (long known) requirements were not met. And Germany is obviously anything but alone with its concerns.”
Party colleague Carl-Julius Cronenberg also emphasized: “In addition to Germany, clear criticism was heard from many other member states.” The FDP’s no vote corresponds to the coalition agreement. The EU Parliament’s chief negotiator, Lara Wolters, emphasized in an interview with the German Press Agency that the FDP was closely involved in the negotiations and was on board. Other claims are “nonsense,” said the Social Democrat.
The Union chairman in the EU Parliament, Daniel Caspary, said that the mood among the EU states was clear. The supply chain law would have been rejected if there had been a vote. An attempt is being made to soften critics in the last few meters by delaying.
Criticism from business
Business representatives also welcomed the fact that the supply chain law was not passed. The Federal Association of Wholesale, Foreign Trade and Services stated that although the goals were undisputedly correct, the directive itself was poorly crafted. “German medium-sized businesses are drowning in reporting obligations and a flood of questionnaires even without additional burdens from Brussels.”
The Central Association of German Crafts explained that the law meant “additional unjustified and disproportionate burdens for companies that are already burdened with excessive bureaucracy” and should not be passed in its current version.
Human rights activists appeal to Scholz
The President of the German Institute for Economic Research spoke out strongly in favor of the project on Thursday. Germany will suffer significant economic damage and Europe will suffer irreparable political damage if the supply chain law does not find a majority, said Marcel Fratzscher.
Human rights activists expressed sharp criticism and appealed to Chancellor Olaf Scholz and the federal government to find a quick agreement. The organization Global Witness said the federal government was “being blackmailed by its junior coalition partner.” Time is running out. EU states would have to work with the Belgian Presidency to pass the law.
The Supply Chain Act Initiative accused the FDP of trying to spread uncertainty among other EU states “with false claims and massive foul play”. “The Chancellor must use his directive authority and save Germany’s face in the EU,” said a spokesman. The environmental organization Germanwatch and the aid organization Bread for the World also called on the Chancellor to support a adoption. (dpa)