The Supply Chain Act aims, among other things, for companies to ensure that they do not profit from child labor. Justice Minister Buschmann fears disadvantages for Germany as a business location.
Federal Justice Minister Marco Buschmann has defended his opposition to the planned EU supply chain law. “High standards in supply chains are a good and legitimate goal that I share,” said the FDP politician to the German Press Agency. “But this good goal must not lead to the self-strangulation of our business location.”
Regulation of supply chains must improve the human rights situation, but also the economic situation. Germany actively negotiated until the end in order to get closer to this.
Labor Minister Hubertus Heil had announced that Germany would not agree to the planned EU law and blamed the FDP for this. The SPD politician said that he had made compromises and proposed solutions right up to the end, but the Free Democrats were not prepared to go down this path. He accused his coalition partner of an “ideologically motivated blockade”. A German abstention would be met with incomprehension among its European partners.
Buschmann countered: “The present result does not do justice to our goals.” In the end, the risks for Germany and its medium-sized economy would have outweighed the risks. That’s why it’s clear to him: “We don’t agree with the draft.”
German abstention could lead to failure
The European supply chain law is intended to hold large companies accountable if they profit from child or forced labor outside the EU. A German abstention could cause the entire set of regulations to fail because the necessary majority in Brussels is in jeopardy.
Buschmann criticized the draft as going in the wrong direction. Germany urgently needs more economic dynamism. “We have to reduce bureaucracy – instead of creating new bureaucratic shackles.” On this point he hopes for good cooperation with Heil.
“I recently submitted the draft bill for the implementation of the EU directive on sustainability reporting by companies to the departmental vote,” said Buschmann. In it he proposes abolishing double reporting obligations from this directive and the German Supply Chain Act. Since the Minister of Labor has also considered this idea, “I would be happy if he would now go down this path.” This would be a good step – regardless of the voting behavior on the supply chain directive.
Source: Stern
