German Federal Minister of Economics Robert Habeck Advocates for Pause in National Supply Chain Law
Berlin, Germany - Robert Habeck, the Federal Minister of Economics from the Green Party in Germany, has called for a pause in the national Supply Chain Law during his speech at the Family Business Day in Berlin. The law, which imposes obligations on companies above a certain size to monitor their suppliers, aims to prevent products sourced from child labor or violating environmental standards from circulating. Introduced by the Grand Coalition, the law has faced criticism from many sectors of the economy for its perceived bureaucratic burden, especially impacting small businesses. Habeck's proposal comes as the EU recently adopted a supply chain directive that is expected to replace the national law, focusing more on liability issues rather than extensive reporting obligations. While acknowledging support from reputable companies like Aldi Süd, Bayer, Mars, KiK, and Tchibo, Habeck emphasized the need to give companies a transition period of about two years before implementing the EU directive in Germany. His proposal, however, faces challenges as other key stakeholders, including Labor Minister Hubertus Heil of the SPD, have differing opinions on supply chain regulation. Habeck's discussions with Chancellor Olaf Scholz and Finance Minister Christian Lindner aim to incorporate adjustments to the supply chain law as part of the Dynamization Package for the German economy. As the debate continues, entrepreneurs are awaiting clarity on what to expect from the evolving supply chain regulations.
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