A controversial compromise to weaken the EU supply chain law has collapsed for the time being. A narrow majority of MPs voted not to start final negotiations with the EU states. This means that Parliament will have to vote again on the content of the project in November. In the crucial negotiations with the EU states, it could advocate for stricter or significantly weaker rules.
What is particularly explosive about the decision is that the EPP, an association of Christian-democratic and conservative parties in Europe, which also includes the CDU and CSU, the Social Democrats (S&D) and Liberals had actually previously negotiated a compromise in the Legal Affairs Committee. The three factions actually work together in a kind of informal coalition. They have a narrow majority in parliament. However, in the secret vote, representatives from their own ranks must have deviated from the respective party line.
In today’s vote in the European Parliament, there was no majority for the negotiating mandate for the EU Supply Chain Directive (CSDDD).
Accusations of blackmail and harsh criticism
According to the Supply Chain Act initiative, the failure is seen as a direct result of the destructive policies of the European People’s Party. This systematically gutted the directive in the Legal Affairs Committee and sacrificed key ambitions to protect human rights and the climate, according to a statement on Wednesday.
“Instead of taking responsibility, the EPP undermined the directive so uncompromisingly that even parties in the democratic center and the Von der Leyen coalition could no longer agree. This result is not an expression of a lack of unity – it is the consequence of the EVP’s blackmail tactics,” explained Heike Drillisch from the Supply Chain Act Initiative.
The initiative also accuses the EPP negotiator Jörgen Warborn of severely restricting central components of the CSDDD in the negotiations – from the Europe-wide liability regulation to the scope of application – and thus robbing the directive of its core and turning it into a largely ineffective shell.
Warborn is also said to have threatened in the negotiations to demand even greater changes to the project through a majority with right-wing to right-wing extremist forces. When asked about the criticism, Warborn said at a recent press conference: “I am very focused on the results.” It is good that there is a majority of Social Democrats and Liberals in the Legal Affairs Committee because Europe is in a problematic situation.
Drillisch is now calling for the democratic parties in the European Parliament to return to the negotiating table quickly. “Now what is needed is a real willingness to compromise on the part of the EPP and constructive discussions with the parties in the democratic center,” Drillisch continued. This is the only way to strengthen the aim of the directive – the protection of human rights and the environment in global supply chains.
The Greens speak of a catastrophe
“This is a disaster for the EPP,” said Green MP Anna Cavazzini shortly after the vote. This is a reminder of the EPP’s blackmail tactics and threats to vote with the far right. Social Democrats also voted against the plan. The Association of the Automotive Industry (VDA) speaks of a missed opportunity to relieve the burden on small and medium-sized industrial companies.
Among other things, the Legal Committee agreed that the requirements only apply to large companies with more than 5,000 employees and an annual turnover of at least 1.5 billion euros. The original limit was 1,000 employees and a turnover limit of 450 million euros. In addition, companies that violate the rules should no longer be subject to civil liability at EU level.
The aim of the EU directive is to protect human rights
The European supply chain law was actually passed last year. The aim is to strengthen human rights worldwide. Large companies should be held accountable if they profit from human rights violations such as child or forced labor. After criticism from companies, parts of the directive should be simplified before they are applied. (DPA/FashionUnited)
This article was updated on October 22nd at 3:35 p.m. with a message from the Supply Chain Act Initiative.