Merz calls for radical abolition of the supply chain law – coalition divided!

Merz calls for radical abolition of the supply chain law – coalition divided!

The discussion about the supply chain law in Germany is coming to a head. Chancellor Friedrich Merz is calling for a complete abolition of the German supply chain law, which has raised considerable concerns among his coalition partners within the black-red government. Merz is therefore exceeding the framework conditions agreed in the coalition negotiations with the SPD. Companies are confronted with increasing bureaucratic requirements that they find burdensome. Information and documentation requirements as well as the threat of sanctions are criticized as excessive and lead to time and financial expenditure without any discernible benefit Stuttgart News reported.

Finance Minister Lars Klingbeil made comments in this context during his inaugural visit to Brussels, where he is committed to maintaining the supply chain law at EU level. This is in clear contradiction to Merz’s demand. Although the new federal government has been in office for less than a week, the differences between the SPD and the CDU/CSU are already noticeable. Klingbeil emphasizes the importance of the supply chain law, but announces that he wants to cut bureaucracy and reduce reporting requirements, which reinforces the position of the Social Democrats. Loud daily news the SPD sees the law as an important achievement of the last legislative period.

Coalition negotiations and disagreements

In the coalition agreement, the SPD and the Union have already agreed to abolish the German supply chain law. However, they aim to implement the European directive in a “low-bureaucracy and enforcement-friendly” form. The EU has decided to postpone the entry into force of this directive by one year; It should now come into force gradually from 2028 and be fully implemented by 2029. Merz receives support from parts of the Union and business associations that see the law as a bureaucratic hurdle.

René Repasi, spokesman for the European SPD, expressed surprise at Merz's intention and emphasized that there is no majority in Parliament and the Council for abolishing the supply chain law. At the same time, the EU Commission rejected Merz's request and instead proposed simplifying the reporting requirements. These developments raise questions about the future direction of German and European policy, especially on an issue that is so important for the economic integrity and social responsibility of companies in Europe.

Outlook and European perspective

Klingbeil's optimistic attitude towards planned spending on infrastructure and armaments amounting to 500 billion euros gives the impression that his ministry leadership is also determined with regard to compliance with European debt rules. The head of the Eurogroup, Pascal Donohue, praised the German plans and sees them in line with euro area and EU regulations. Given the messy situation, it will be exciting to see what solutions will emerge in the coming weeks and months to overcome the internal differences within the coalition and establish stable regulations.