Members of the European Union announced February 9 that they were postponing a decision on a proposed law that would require large companies in the EU to check their supply chains for forced labor and/or environmental damages after Germany and Italy said they would abstain from the vote.
According to Reuters, a diplomat said it was clear February 9 that there wouldn’t be enough representatives from the 27 EU member states to back the law following Germany and Italy’s plans to abstain. A “qualified majority” of 15 EU countries that represent 65% of the bloc’s population were needed for the Corporate Sustainability Due Diligence Directive (CSDDD) to move ahead in the European Parliament to a final vote.
An EU diplomat said that a decision on the law is being rescheduled to February 14.
If approved, the rule, which would take effect in 2027, will apply to European companies that employ over 500 people and have a net worldwide turnover of at least 150 million euros ($162.45 million). Companies found to be breaching the law could face fines equal to 5% of their global sales.
“Germany is obviously anything but alone with its concerns,” wrote German finance minister Christian Lindnerin in a social media post.
Germany’s Free Democrats Party declared its opposition to the rule earlier this month, arguing that the legislation would create more bureaucratic processes for businesses as well as legal uncertainties.
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- Source: https://www.supplychainbrain.com/articles/39049-eu-delays-decision-on-supply-chain-law-following-german-opposition
