rights violations in their supply chains is uncertain following criticism from the Free Democrats, one of its ruling parties. Finance Minister Christian Lindner, leading the pro-business Free Democrats, expressed reservations, aligning with business groups opposing the legislation. This development has cast doubt on what seemed to be a finalized agreement among EU lawmakers and member states’ councils last month, potentially intensifying conflicts within the Chancellor Olaf Scholz’s coalition.
In a letter to Scholz, the presidents of four major business associations urged him to veto the proposed law, citing impracticality and disproportionate measures. The Business Associations (BDA, BDI, DIHK, and ZDH) argued against the legislation’s viability. The Federation of German Industries (BDI) released a survey revealing the impact of a less stringent national supply chain law implemented in 2023, indicating that it led many companies, particularly small and medium-sized enterprises, to reduce supplier networks or consider exiting specific countries.
The government spokesperson confirmed ongoing discussions within the coalition about the proposed EU law. The outcome of these deliberations will influence Germany’s stance in EU bodies. The Free Democrats’ opposition echoes their previous interference in the bloc, such as delaying an EU vote on a law to phase out new CO2-emitting cars by 2035 due to last-minute objections.
