Justice Minister Buschmann rejects new supply chain directive proposal

Enlarge image

Justice Minister Marco Buschmann

Photo: M. Popow / Metodi Popow / IMAGO

The Belgian Council Presidency's compromise proposal for the planned EU supply chain directive still does not receive approval from the federal government.

Federal Justice Minister Marco Buschmann (FDP) also rejects the new draft.

"The Federal Ministry of Justice informed the Federal Ministry of Labor and Social Affairs this evening that it does not see its concerns regarding the supply chain directive resolved, even after submitting a revised draft," a spokeswoman told SPIEGEL.

Lots of problematic areas

The fundamental criticism remains.

The regulations are “too bureaucratic and continue to harbor unmanageable liability risks.”

In addition, it continues to impose excessive obligations on companies when it comes to environmental protection.

"The current text contains so many problematic passages that there are very serious doubts that they can be remedied quickly."

Instead, Buschmann suggests “putting the old text aside and, after the election, launching a lean, low-bureaucracy draft with a newly appointed commission.”

In the EU, another compromise proposal was sent out on Tuesday and Wednesday because the EU supply chain directive does not find a majority among governments.

The project's critics were largely met.

The regulation should no longer apply to companies with a size of 500 employees and a turnover of 150 million euros, but only to those with 1,000 employees and a turnover of 300 million euros.

The FDP had complained that the EU project was putting too much of a burden on medium-sized businesses.

The proposal also softened the question of civil liability and removed risk sectors as a category.

The FDP had already rejected the previous proposal.

The SPD and the Greens are in favor of approval.

Since the coalition does not agree, the federal government is abstaining from the EU, which, however, amounts to rejection.

Germany already has a supply chain law.

The planned EU version would go beyond its specifications.

At EU level, it is stipulated that companies are liable for breaches of duty of care, which is excluded under German law.

In addition, more companies should have been affected by the EU regulation than by the German law.