Warning about the EU supply chain law: German business is putting pressure on Olaf Scholz

Warning about the EU supply chain law: German business is putting pressure on Olaf Scholz

According to a report by www.welt.de, German business has warned Chancellor Olaf Scholz about the planned EU supply chain law. In a letter to the SPD politician, representatives of German industry warned that companies could be confronted with considerable legal uncertainty, bureaucracy and incalculable risks. This could lead to companies withdrawing from Europe and being faced with unfounded lawsuits and excessive penalties.

The planned directive stipulates that large companies will be held accountable if they profit from child or forced labor outside the EU. Companies must also create a plan to ensure that their business model and strategy are compatible with meeting the Paris climate goals. The EU version of the Supply Chain Act goes beyond the requirements of the German law and applies to companies with more than 1,000 employees.

The impact on the market and the financial industry could be significant. Large companies face additional bureaucracy and possible penalties, which could put a strain on their financial situation. Additionally, due to the legal uncertainty and risks associated with the law, investors may steer clear of these companies. In the long term, this could lead to a decline in investment and a deterioration in competitiveness.

It remains to be seen whether the federal government will agree to the planned EU supply chain law and to what extent the German economy will prepare for these possible changes. It is important that companies review their supply chains and ensure they comply with the requirements of the law to minimize any potential negative impact on their business.