EU supply chain law faces major obstacles in Germany

Significance

The vote was lost following Germany’s decision to oppose the directive, which encouraged others to abstain. There are only a few weeks left for the Council to vote again on the proposals before June’s European Parliament elections.

Impacts

• The manufacturing, automobile and pharmaceutical sectors are among the industries that would be most affected by the law.
• Growing pushback against environmental policies in the EU will undermine Brussels’ capacity to shape international climate policy.
• If the EU law dies, different national policies would leave an uneven EU playing field for business responsibility for supply chain abuses.