Supply Chain Law: EU Parliament Voted for Weakening

The regulations were intended to make production processes more environmentally and worker-friendly and were somewhat controversial. The Parliament voted with a majority mainly from conservative and far-right votes to weaken the EU supply chain law.

Accordingly, the rules would only apply to large companies with more than 5,000 employees and an annual turnover of at least 1.5 billion euros. Originally, the threshold was set at 1,000 employees and a turnover limit of 450 million euros. Additionally, companies that violate the rules would no longer be subject to civil liability at the EU level. Also, the entire supply chain will not be monitored as originally planned. At the end of October, a narrow majority of the deputies had voted not to start final negotiations with the EU states yet. This can now happen.

Dossier to be completed this year

The Danish presidency aims to complete the dossier this year. All EU institutions must agree to this. In April, the Parliament had already voted in a fast-track procedure for the one-year postponement of the supply chain law proposed by the EU Commission and the exemption of 80 percent of EU companies from sustainability reporting. The supply chain law was originally proposed by the Commission to hold large companies accountable if they benefit from child or forced labor outside the EU.

To make Europe more competitive, the Commission wants to relax and reduce countless laws and regulations with its omnibus packages. The goal is to reduce bureaucracy for companies by about a quarter overall. Reporting obligations for small and medium-sized enterprises (SMEs) are to be reduced by 35 percent. Previous omnibus packages involved simplified environmental requirements and controls, as well as more readily available subsidies for farmers and targeted exemptions for smaller companies.

(APA/Red)

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