New EU supply chain law and the consequences for the German economy

New EU supply chain law and the consequences for the German economy

According to a report by www.zeit.de, the FDP has unexpectedly changed its position on the planned European supply chain law and the EU climate targets for trucks. The party opposed the law, even though it had previously worked on it. This behavior could lead to the vote in the Council of EU countries being blocked, as Germany is expected to abstain from the vote. This abstention could be crucial since a law must have the consent of 15 member states, which together make up at least 65 percent of the EU population. Since almost 20 percent of the EU population lives in Germany, the German voice has a lot of weight.

The vote in the Council of EU countries on the supply chain law and the climate targets for trucks could have far-reaching effects on the market and the financial sector. If the planned supply chain law comes into force across Europe, companies would be obliged to exclude exploitation, child labor and unacceptable environmental pollution in their international supply chains. This could result in companies having to adapt their production processes and focus more on sustainable supply chains. The stricter climate targets for trucks could pose new challenges for the automotive and logistics sectors as they would be forced to make their fleets more environmentally friendly.

Blocking the supply chain law and climate targets for trucks in the Council of EU countries could lead to legal uncertainty and a slowdown in progress on social and environmental responsibility in the economy. Furthermore, it could weaken trust in European economic policy and the willingness to cooperate at European level.