Economics Minister Habeck of the Greens is pushing for the supply chain law to be suspended. He is receiving applause from the business community for this, but is risking a row with the coalition partner SPD.
The proposal by Federal Minister of Economics Robert Habeck (Greens) to suspend the German supply chain law for around two years has met with opposition from the coalition partner SPD. Business associations, on the other hand, support the surprising initiative.
The background is that the German supply chain law is already in force, but a comparable EU directive has yet to be transposed into national law. The EU states now have a good two years to do this. The aim of the EU supply chain law is to strengthen human rights worldwide. Large companies should be able to be held accountable if they profit from human rights violations such as child or forced labor.
Difference between German law and EU directive
One of the biggest differences between German law and the EU directive is liability. German law excludes companies from being liable for breaches of duty of care – the EU regulation allows this.
SPD parliamentary group leader Rolf Mützenich rejected Habeck’s proposal to suspend the German law. With such statements, the minister had “done a disservice to long-standing efforts to create an economic policy based on human rights and fair wages and directed against exploitation,” Mützenich said in a statement on Saturday in Berlin.
Green politician Habeck made his proposal on Friday at the Family Business Day. Habeck then told the dpa that a pragmatic approach should be taken when adapting EU law to German law. “That is why I have proposed pausing or significantly reducing the German supply chain law until EU law has been implemented. The protection of human rights and environmental standards will only be successful if the requirements are also accepted by companies.”
SPD wants to stick to supply chain law
Mützenich called it “common practice to adapt national regulations to EU law. Until then, however, the current law will remain in place. The SPD parliamentary group will not participate in a blanket suspension of the German supply chain law,” Mützenich emphasized. The SPD has worked for years for this law. “We will not simply throw these efforts overboard. I am irritated that a department head believes he can unilaterally override existing law. I am also disappointed that important principles and regulations are being questioned so carelessly,” added the SPD politician.
The employers, on the other hand, were pleased. “It is long overdue to repeal the German supply chain law and to implement the European directive in a streamlined form,” said the general manager of the BDA employers’ association, Steffen Kampeter, on Saturday. “By suspending it, we would create the urgently needed breathing space for the German economy. Now the Minister of Labor must act quickly.” The Federal Ministry of Labor, headed by Hubertus Heil (SPD), is in charge.
The Chemical Industry Association stressed that companies urgently needed relief. “The proposal from Economics Minister Habeck comes at the right time,” said CEO Wolfgang Große Entrup. “We stand for the protection of human rights. But the European standard does not need a German overcrowding mania.”
Source: Stern
