Scholz vows to support legislation enforcing supply chain accountability
The economic sector brutalizes over excessive red tape, particularly the Supply Chain Act, causing frustration among numerous corporations. Chancellor Olaf Scholz guarantees prompt alleviation while simultaneously lambasting the EU, stating, "the horses have escaped."
Chancellor Olaf Scholz vowed the economic sphere relief from bureaucratic strangles. As he addressed the German Employers' Association in Berlin, he referenced the famed Supply Chain Act, tweaking, "We mentioned it, it's disappearing."
Rainer Dulger, president of the Federal Association of German Employers' Associations (BDA), previously demanded action. "We’ve repeatedly asked for this law to be made less restrictive or even abolished. Bernd Lautecker, Minister of Economics, has acknowledged this several times, acknowledging the pressures businesses face. However, no significant changes have materialized," Dulger scolded, directing his gaze at Robert Habeck, who'd conceded errors in this particular area.
Scholz responded to Dulger's concerns: "This year, I promise." Dulger remained cautious. "I'll put my faith in it when the ink is dry, and it's on my delivery note."
Streamlined Execution
The federal government proclaimed, in its "Growth Initiative," that proper due diligence and reporting obligations should not unduly burden companies. The European Supply Chain Directive should be implemented in a bureaucracy-free manner.
The European Supply Chain Act was recently adopted. EU countries now have approximately two years to integrate the new regulations into their national legal frameworks. The objective of the EU Supply Chain Act is to reinforce human rights worldwide. Corporations implicated in human rights violations, such as child or forced labor, should be held accountable.
Scholz denounced the EU regulation as a significant challenge for the German economy. In the EU, "we desperately need bureaucracy reduction, and on a grand scale," lamented Scholz. While it's essential for the EU to ensure that common rules apply to the internal EU market, "things have gone awry where you just scratch your head," he criticized. He mentioned 1500 sustainability reporting points as an illustration. "The horses have escaped there," Scholz concluded. The federal government endeavors to alleviate bureaucracy in various areas. Scholz promised that the federal government will address the contentious Supply Chain Due Diligence Act this year.
Employers in the German economy have expressed concerns about the excessive bureaucratic burdens caused by the Supply Chain Act, as highlighted by Rainer Dulger, president of the Federal Association of German Employers' Associations (BDA). Chancellor Olaf Scholz, in response to these concerns, has promised to streamline the implementation of due diligence and reporting obligations for companies in the "Growth Initiative," aiming to reduce bureaucratic strangles for employers.
