The black and red coalition depends on the planned defusing of the so-called supply chain law.
A corresponding draft law of the Federal Ministry of Law was sent to various associations and vote to the other ministries and could be decided by the Federal Cabinet next Wednesday, according to DPA information.
The obligation to report is eliminated
The Union and the SPD are thus implementing a project from the coalition agreement for reducing bureaucracy, in which they had agreed to abolish the reporting obligation provided for in the German supply chain law. In addition, only serious violations of specifications from the law will be punished in the future.
The supply chain law, which has been in force since 2023, is intended to ensure that certain labor and environmental standards are observed for products that are produced abroad for the German market. Companies must regularly publish a report on the fulfillment of these duties.
High bureaucratic effort
Competition disadvantages and a high bureaucratic effort are complained here, which should now be eliminated by the planned new regulation. As can be seen from the justification for the draft law, the companies are relieved of around 4 million euros in bureaucracy costs.
In parallel to the German supply chain law, there is also an EU supply chain guideline, which the EU countries must implement by July 2027 according to the draft law. This should then replace the German regulation.