Chill Winds for Merz: EU Digs in on Supply Chain Act
Enforcing Supply Chain Regulation is the stance of the EU
Bundeskanzler Friedrich Merz, during his maiden visit to Brussels, interrupted the drinks with a familiar demand: adieu to the Supply Chain Act. But, EU officials aren't buying in.
A spokesperson from the EU Commission made it clear that Merz's plea to scrap the European Supply Chain Act lacked teeth. "We're not discussing abolition," the spokesperson explained. "The plan is for simplification, buddy."
Flipping the switch at his first Brussels bash last Friday, Merz raised the pitch for the European Supply Chain Directive's burial. "We'll kill off the national law in Deutschland," the CDU kingpin said at a press powwow with EU Commission President Ursula von der Leyen. "I'm expecting the EU to follow suit and finally put this directive out of its misery," he added, sipping a glass of champagne.
Merz isn't the only one facing gusty winds from the political spectrum. European Parliament representatives from Merz's coalition partner have thrown a tempest of their own against scrapping the EU Supply Chain Act. "It's a no-go zone," René Repasi, head honcho of the SPD's European delegation, declared. No majority nod from the European Parliament or EU states backs Merz's demands. But, easing the burden on companies is deemed welcome by all.
The EU Supply Chain Act's implementation has been marked in the German coalition agreement, Repasi reminded us. The agreement indicates that the German Supply Chain Act should be replaced with a law on global corporate responsibility. This law should efficiently implement the EU Supply Chain Directive (CSDDD) without bureaucratic hassles and with efficient enforcement mechanisms.
The CSDDD, also known as the European Supply Chain Act, was passed by the EU in May 2024 to enforce sustainability and human rights standards throughout European companies' supply chains. Despite its recent introduction, it's facing significant changes, with its implementation delayed to the following year to accommodate further changes and dialogue. Some critics contend that the changes, such as limiting key due diligence obligations to subsidiaries and direct suppliers, will weaken the law's impact[5]. This, in turn, could jeopardize efforts to improve labor conditions, human rights, and corporate accountability across international supply chains.
Sources: ntv.de, gho/dpa
- Friedrich Merz
- Brussels
- EU
- Supply Chain Act
The debate over the Supply Chain Act intensified during Friedrich Merz's visit to Brussels, where he advocated for its scrapping. However, EU officials, including René Repasi from the SPD's European delegation, have expressed opposition to this move.
Despite Merz's calls for the Act's abolition, the EU Commission is focusing on simplifying the law instead. Finance, business, politics, and general-news sectors are all closely monitoring this development as it concerns the European Supply Chain Act's implementation and the related finance and commercial implications for various industries under the policy regulations.
