Image: EMMANUEL DUNAND (AFP)
The planned EU supply chain law should be submitted to the EU member states for voting again as soon as possible. The 27 EU diplomats in the so-called Committee of Permanent Representatives could possibly vote on this as early as Friday, said Flemish Economics Minister Jo Brouns after the EU Competition Council in Brussels on Thursday.
- Read here: EU supply chain law fails to achieve necessary majority among EU states
It is difficult to estimate whether a potential vote would be positive. Belgium, which currently holds the presidency of the Council (body of EU states), recently presented a new proposal. On Thursday, Finland, at least one country that had previously opposed the supply chain directive, said it could agree to the new proposal. Ireland, on the other hand, regretted that the project would be watered down with the new proposal, but still wants to agree.
Minister Kocher: Continuing concerns
Austria’s Economics Minister Martin Kocher (VP) stated before today’s meeting that he still had concerns despite the new compromise proposal. The Belgian compromise proposal stipulates that only companies with more than 1,000 employees (previously: 500) and a turnover of more than 300 million euros (previously: 150 million) should be affected by the directive.
“I think we also need positive and negative lists, the ‘safe harbor clauses’, which ease the bureaucratic burden on companies,” says Kocher. The idea behind this is that, for example, certain countries or suppliers are officially certified as safe and companies are thus exempt from the corresponding duties of care. “We all want there to be no slave labor, we all want child labor to no longer exist, we all want there to be no environmental destruction in countries outside the European Union,” emphasized the minister. “But there also has to be sensible regulation.”
- Read here: Supply Chain Act: New idea aims to reduce bureaucracy for companies
The EU supply chain law is on hold after several states – including Austria – expressed reservations about the compromise negotiated with the EU Parliament. Given the upcoming EU elections, it is becoming increasingly unlikely that the Supply Chain Directive will be passed before the election.
No unity in the coalition
Kocher shares responsibility for the EU supply chain law with Justice Minister Alma Zadić (Greens). In the past she had campaigned for approval from Vienna. Because of Kocher’s rejection, there is no government position, which is why Austria has so far abstained from votes in Brussels (which legally amounts to a no). However, Kocher does not fear that Zadić could instruct the Austrian EU ambassador to vote for the supply chain law in a possible vote. Such an instruction from Zadić is not legally possible, both APA ministries confirmed.
- Read here: Repairing the Policy: What Could Be Between Child Labor and Bureaucracy
A similar situation exists in Germany, where the liberal FDP is blocking Berlin’s approval. Before the meeting in Brussels, German State Secretary Sven Giegold (Greens) welcomed the new proposal, but emphasized that it did not speak for the entire government. The German Justice Minister Marco Buschmann (FDP) had already announced on Wednesday that he would also reject the latest compromise proposal.
The EU supply chain law is intended to hold large companies accountable if they profit from child or forced labor outside the EU. Larger companies must also create a plan to ensure that their business model and strategy are compatible with meeting the Paris climate goals to limit global warming.
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