The German economy is warning Chancellor Scholz about the planned EU supply chain law

The German economy is warning Chancellor Scholz about the planned EU supply chain law

According to a report by web.de, German business is putting pressure on Chancellor Olaf Scholz to stop him from agreeing to the planned EU supply chain law. A letter to the SPD politician warns of unfounded lawsuits and excessive penalties that companies from Europe could face if the law is passed.

The planned EU supply chain law is intended to hold large companies accountable that profit from exploitative child labor or forced labor outside the EU. It also requires them to put plans in place to ensure their business model and strategy are in line with the Paris climate goals.

The impact of this law could be significant, particularly for companies with a workforce of over 1,000 employees. The EU version is expected to tighten existing German legislation by lowering limits and making companies subject to civil liability. This in turn could lead to further burdens and uncertainties for companies.

Based on the Federal Government's information that almost 80 million children work under exploitative conditions worldwide, it is clear that the introduction of the EU Supply Chain Act is urgently needed. However, it is important to carefully analyze the potential impact on companies and take measures to best support them and minimize possible risks.