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Employers' Day in Berlin

dpa/Annina Schopen,

Scholz on the Supply Chain Act: "It's going away"

At the Employers' Day in Berlin, Federal Chancellor Olaf Scholz promised to ease the burden on business by reducing bureaucracy, particularly with regard to the German Supply Chain Act. Scholz promised changes before the end of the year.

Olaf Scholz speaks during the German Employers' Conference 2024 of the Confederation of German Employers' Associations (BDA). © Sebastian Christoph Gollnow/dpa

Federal Chancellor Olaf Scholz has promised the economy relief from bureaucracy. "That's what we said we would do away with," said the SPD politician at the Employers' Day in Berlin, referring to the so-called Supply Chain Act. According to government circles, he was referring to the German Supply Chain Act, which is to be adapted to upcoming new EU regulations.

The President of the Confederation of German Employers' Associations (BDA), Rainer Dulger, had previously urged progress. "We have repeatedly asked for this law to either be relaxed or repealed. The Minister of Economic Affairs has also confirmed to us several times that he has understood what is at stake and that he will get to work immediately. But he has not achieved or delivered anything," he criticized with regard to Robert Habeck (Greens), who had admitted mistakes in this regard. Scholz responded to Dulger's call for change: "This year."

He was not yet able to convince Dulger. "I'll believe you when the ink is dry and it's on my delivery bill." In its growth initiative, the German government had announced that disproportionate burdens on companies should be avoided when implementing due diligence and reporting obligations. The European Supply Chain Directive should be implemented with as little bureaucracy as possible. The European supply chain law was recently adopted. The EU member states now have a good two years to transpose the new rules into national law. The aim of the EU Supply Chain Act is to strengthen human rights worldwide. Large companies are to be held accountable if they profit from human rights violations such as child or forced labor.

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