Fundamental freedoms - SPD Disagrees with Habeck: Do Not Cancel Supply Chain Regulations
The idea put forward by the Federal Economics Minister, Robert Habeck (Greens), to postpone the German Supply Chain Act for around two years is running into resistance from the SPD, their coalition partner. On the other hand, business associations show their support for this unexpected proposal.
The reasoning behind this is that the German Supply Chain Act is already in operation, while a similar EU directive is not yet translated into national law. The EU states have been afforded the luxury of two whole years to undertake this task. The purpose of the EU Supply Chain Act is to bolster human rights globally. It demands that large companies are held responsible if they benefit from human rights infringements such as child or forced labor.
Discrepancies between German law and EU directive
Amongst the major variances between the German law and the EU directive is liability. In the German law, companies cannot be held responsible for negligence, whereas the EU regulation authorizes this.
The SPD parliamentary group leader, Rolf Mützenich, dismissed Habeck's idea to postpone the German law. Habeck's suggestion, as per Mützenich, was akin to "tossing away years of efforts to create a business policy grounded in human rights and fair wages," he said in a statement from Berlin on Saturday.
The Green politician Habeck commented on this issue on Friday during the Day of the Family Business. Habeck mentioned after the event that when adjusting EU law to German law, a pragmatic approach should be taken. "This is why I proposed to either pause or significantly curtail the German Supply Chain Act until the EU law is implemented. The protection of human rights and environmental standards will only prevail if the corporations accept these standards," Habeck said to the dpa.
The SPD, however, wants to preserve the Supply Chain Act as it is. "It is customary to adapt national regulations to EU law. But until that happens, the valid law stays in place," Mützenich emphasized. The SPD has invested considerable time and effort into this law. "We will not dispense with our efforts so readily. I'm also taken aback by a ministerial head who believes he can scrap valid law at his pleasure. I'm also disappointed that basic principles and regulations are being questioned so lightly," the SPD politician added.
Businesses, on the contrary, welcomed the proposition. "It's only natural to suspend the German Supply Chain Act at this point and only implement the European directive in a diluted form," stated BDA Managing Director Steffen Kampeter on Saturday. "With the suspension, we would create some breathing space for the German economy. Now the Economics Minister needs to act swiftly." The Federal Ministry of Labor is in the lead, with Labor Minister Hubertus Heil (SPD) taking charge.
The Association of the Chemical Industry underscored that corporations required assistance. "The proposal by Economics Minister Habeck is most timely," remarked BDI Managing Director Wolfgang Große Entrup. "We're in favor of safeguarding human rights. Nonetheless, the European standard doesn't require any additional burdens from Germany."
Read also:
- The EU Supply Chain Act, aimed at enhancing human rights globally, requires large companies to assume responsibility for human rights infringements such as child or forced labor in their supply chains.
- The SPD, led by parliamentary group leader Rolf Mützenich, disagrees with Federal Economics Minister Robert Habeck's proposal to postpone the German Supply Chain Act, viewing it as abandoning years of work on business policies grounded in human rights and fair wages.
- Habeck proposed pausing or significantly reducing the German Supply Chain Act until EU law is implemented, arguing that this would ensure the protection of human rights and environmental standards if corporations accept them.
- The SPD, however, insists on preserving the Supply Chain Act as is and adapting it to EU law once it becomes available, stating that valid law should not be discarded lightly and that basic principles and regulations should not be questioned carelessly.
- Business associations, including the BDA and BDI, have welcomed Habeck's proposal, advocating for a suspension of the German Supply Chain Act and the implementation of a diluted EU directive to provide relief for the German economy.
- Germany's trade minister, Rolf Mützenich of the SPD, emphasized that adapting national regulations to EU law does not mean that the existing law should be bypassed, noting that the SPD has invested considerable time and effort into the Supply Chain Act.
- Robert Habeck, the Green politician leading the opposition to the SPD's stance on the Supply Chain Act, mentioned during the Day of the Family Business that a pragmatic approach should be taken when adjusting EU law to German law.
