Supply Chain Act: Agreement at the third attempt - Berlin outvoted

In Brussels, the EU states have agreed on the controversial supply chain law at the third attempt. Under pressure from the FDP, Germany abstained from the vote.

After a long struggle, a sufficient majority of EU states support a weakened European supply chain law to protect human rights. Germany, which abstained in the Committee of Permanent Representatives of the Member States, was thus outvoted. An abstention in the committee has the same effect as a "no" vote.

Next "German Vote"

In the Federal Government, the FDP urged Germany not to vote in favor. The Liberals fear, for example, that companies will withdraw from Europe for fear of bureaucracy and legal risks. Politicians from the SPD and the Greens, on the other hand, are in favor of the project. The disagreements had led to an open exchange of blows in the traffic light coalition.

Supply chain law

Negotiators from the European Parliament and the EU member states had already agreed on a supply chain law in December. This is intended to hold large companies accountable if they profit from child or forced labor outside the EU, for example. Larger companies must also draw up a plan to ensure that their business model and strategy are compatible with the Paris Agreement on climate change. The EU Parliament still has to approve the plan. A majority is likely here.

Initially no majority

In Brussels, the EU states have agreed on the controversial supply chain law at the third attempt. Under pressure from the FDP, Germany abstained from the vote.

As the agreement reached in December did not initially find a sufficient majority among the EU states, the project was significantly watered down:

Instead of the original plan, for example, it will no longer apply to companies with more than 500 employees and a turnover of at least 150 million euros.

The limit was raised to 1,000 employees and 450 million euros - after a transitional period of five years. This scope of application is to be approached gradually.

After a transitional period of three years, the requirements will initially apply to companies with more than 5,000 employees and more than 1.5 billion euros in turnover worldwide.

After four years, the limit will fall to 4,000 employees and a turnover of 900 million euros.

The EU Commission is to publish a list of the non-EU companies affected. The requirements could apply to them if they achieve a certain turnover in the EU with their business.

Source: www.zdf.de