EU states demand: Implementation of the supply chain law be postponed!

EU states demand: Implementation of the supply chain law be postponed!

On March 26, 2025, the EU states voted to postpone the EU Supply Chain Act. This postponement proposal comes from the EU Commission and proposes to extend the implementation deadlines by one year, so that the new rules should not come into force until 2028. This decision still requires the approval of the EU Parliament, which is expected to discuss it next week. The supply chain law, passed last year, aims to strengthen human rights worldwide and hold companies accountable for any human rights violations.

The demand for a postponement is met with approval in parts of the economy. Economics Minister Wolfgang Hattmannsdorfer (ÖVP) welcomed the plans to postpone and emphasized that such a decision could enable more economic freedom and offer the opportunity to improve the laws. However, critics from the business community fear that the existing requirements are excessive and could create bureaucratic hurdles that affect Europe's competitiveness.

Different positions on the implementation of the law

Amnesty International welcomed the Council of the European Union's approval of the EU supply chain law, but Germany abstained from the vote. This abstention was criticized by Amnesty; The organization accused the federal government of violating its own coalition agreement, in which it had committed itself to supporting an EU law in line with the UN Guiding Principles on Economic and Human Rights Responsibility.

Julia Duchrow, secretary general of Amnesty International in Germany, said that despite the changes, the law could have a positive impact on human rights in corporate activities worldwide. However, she emphasized that Germany's abstention and the weakening of the legal text endanger the credibility of a values-based foreign policy.

Background on the human rights situation

Around the world, people often consume products such as fruit, chocolate and coffee under inhumane working conditions. Around 1.4 billion workers worldwide work in precarious conditions; 28 million people are affected by forced labor and slavery. In recent years, the COVID-19 pandemic has actually worsened the situation for working children. There are currently around 160 million working children, half of whom are under the age of 12.

In this context, the EU, as the largest internal market, underlines its responsibility to take action against such abuses. Germany, France and the Netherlands have adopted national due diligence laws, while the EU has already regulated certain areas, for example in the areas of conflict minerals and the timber market. The Sustainable Corporate Governance Directive, published in the Official Journal of the EU on July 5, 2024, represents an important measure to anchor human rights and environmental responsibilities in corporate structures.

The directive requires companies with more than 1,000 employees and a turnover of over 450 million euros to identify risks in their value chains and take appropriate preventative and remedial measures. Fines can reach up to 5% of net annual turnover, underlining the seriousness of the regulations. The creation of a climate plan that is consistent with the goal of a maximum of 1.5°C cooling is also part of the new requirements.

With the upcoming discussion about the postponement of the Supply Chain Act, it is once again clear that the balancing act between corporate interests and the protection of human rights in the EU continues to be a challenge.