BDI and BDA call for improvements to the EU regulation of value chains

The German economy - in the form of its two central associations BDI and BDA - defends itself against the stricter EU control of supply relationships. "The EU wants to regulate large parts of the value chain," says Tanja Gönner, General Manager at the Federation of German Industries (BDI) to WELT AM SONNTAG. "This is unrealistic and overwhelms small and medium-sized companies in particular." The proposal even goes far beyond the rules of the German Supply Chain Due Diligence Act and leads to more bureaucracy and legal uncertainty, according to the criticism.

In December last year, the EU member states agreed on the new supply chain law. The European Parliament must take a position on this in May. The goals are big: The EU wants to oblige companies to carefully deal with the social and ecological effects of the entire value chain.

According to this, European clients would have to check in every part of the corresponding processes that there were no violations of the regulations. The EU hopes that this will ensure global compliance with human rights and environmental protection standards.

From the point of view of the German economy, well meant does not necessarily mean well done. She therefore calls for "a European directive with a sense of proportion". On Monday, both associations want to hand over a list of proposed changes to the EU parliamentarians. Otherwise, BDI and BDA fear disadvantages for local companies and the withdrawal of European companies from economically weak regions of the world. On the one hand, political action would be required for the desired changes in these countries, but on the other hand, they can hardly do economically without orders from other regions of the world such as Europe.

The business representatives list a total of eight points in their catalogue: maximum harmonization of legislation in the EU. Compliance with the duty of care should therefore only be limited to the supply chain and direct suppliers, not to the entire value chain - i.e. not to the suppliers' suppliers as well.

That would lead to excessive bureaucracy. Companies with fewer than 1000 employees should be exempted from the tightened regulations. Separate regulations for individual sectors would have to be deleted, as would special requirements for members of the management board.

In addition, the list of due diligence obligations should be shortened and the additional civil liability removed from the draft. The economy also demands clear guidelines and appropriate support. Steffen Kampeter, General Manager of the Confederation of German Employers' Associations (BDA), criticized: The previous proposals would harbor the risk of overburdening companies. "It takes measure and middle - the aim must be an efficient and functioning law. In the currently tense situation, European companies need more creative freedom and a break from new burdens. Otherwise we risk our international competitiveness.”