The Supply Chain Act is intended to hold large companies accountable. But Justice Minister Marco Buschmann continues to oppose the law at EU level. This could cause it to fail.
Federal Justice Minister Marco Buschmann (FDP) wants to stick to his no to the planned EU supply chain law. “The risks for our country and its medium-sized economy outweigh the risks. I have therefore decided that I do not agree with the current proposal,” said the FDP politician to the “Rheinische Post” (Saturday).
The EU Supply Chain Act is intended to hold large companies accountable if they profit from child or forced labor in other EU countries. However, the project threatens to fail due to resistance from the FDP. The Liberal-led ministries of justice and finance opposed the plans shortly before the final EU consultations. If Germany abstains as a result of the disagreement in the traffic light coalition, the entire set of rules could fail because this means that the sufficient majority in Brussels for the project is in jeopardy.
Federal Labor Minister Hubertus Heil (SPD) emphasized that uniform standards were in Germany’s interest and suggested a change to current German rules in the event that the EU law gets the green light. In his opinion, companies’ annual reporting obligations could be suspended by the German Supply Chain Act.
“I appreciate that colleague Hubertus Heil has put forward proposals to bring about bureaucratic relief for the economy,” Buschmann told the “Rheinische Post”. “Regardless of the voting behavior on the supply chain directive, we should continue to work on offering the German economy a perspective of relief instead of new impositions.”