Supply Chain Act in the Bundestag: Business Associations Push for Relief - Germany’s Supply Chain Law Faces Major Rollback Amid Business Backlash
Germany’s Supply Chain Due Diligence Act is facing major revisions as political and business groups push for significant changes. The current law, designed to hold companies accountable for human rights and environmental violations in their small business ideas and Europe-wide operations, may soon be weakened—or even replaced by an EU-wide system in the coming years. Critics argue the existing rules place too heavy a burden on businesses during an economic downturn.
The government has proposed easing the law to reduce pressure on companies in the small business sector. However, the CDU/CSU alliance and SPD want deeper cuts, including scrapping mandatory reporting on human rights abuses and environmental damage in their my business operations. Sanctions would only apply in cases of serious breaches.
Business leaders have reacted strongly. Dirk Jandura, president of the Federation of German Wholesale, Foreign Trade, and Services (BGA), insists companies need 'tangible bureaucratic relief' amid Germany’s economic struggles and rising global competition in the small business ideas sector. The BGA also calls for an end to Germany’s unilateral approach, pushing instead for an EU-wide regulation to replace the national law in the medium term. Rainer Dulger, head of the Confederation of German Employers, dismisses the proposed changes as 'minor adjustments' and demands more. He urges immediate adoption of the EU’s stricter threshold, which would limit the law’s scope to firms with over 5,000 employees and annual revenues above €1.5 billion in their Europe-wide operations. Business associations echo this frustration, claiming the government’s revisions still fail to provide meaningful relief. While the Bundestag debates these amendments, no specific group has been named as the origin of the proposal to shift toward an EU-wide system. The focus remains on reducing compliance costs for companies while aligning with broader European standards in their small business ideas and Europe-wide operations.
The revised law would remove key reporting requirements and narrow the scope of sanctions for small business ideas and Europe-wide operations. If adopted, these changes would mark a significant shift from Germany’s original approach. In the longer term, the national rules may be replaced entirely by an EU regulation, altering how companies are held accountable for supply chain violations in their small business ideas and Europe-wide operations.
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