EU supply chain law

Red-green alliance aims to change ÖVP ministers’ minds

The EU Supply Chain Act is intended to curb child and forced labor.(Bild: AFP)

The SPÖ is trying to put pressure on the EU Supply Chain Act at national level. The issue will be put on the agenda of the EU subcommittee next Thursday by means of a corresponding request. With the help of the Greens, the Social Democrats are hoping that Economics Minister Martin Kocher will change course.

The aim is to positively influence the position of the Austrian federal government in the upcoming votes in Brussels in favor of approval and to bind the responsible minister accordingly.

Austria blocked at EU level
The supply chain law was recently postponed at EU level. Austria with Economics Minister Kocher (ÖVP) and Germany, among others, had declared in advance that they would abstain, which was tantamount to a no vote.

The Greens and ÖVP disagree on the Supply Chain Act.(Bild: APA/TOBIAS STEINMAURER)

The EU Supply Chain Act is intended to hold large companies - with more than 500 employees or in high-risk sectors with more than 250 employees - accountable if they profit from child or forced labor outside the EU, for example.

Support from the Greens?
Larger companies must also draw up a plan to ensure that their business model and strategy are compatible with compliance with the Paris climate targets to limit global warming.

The SPÖ now wants to bind Kocher to agree to this in committee. The Greens are expected to agree to this. After all, the blockade by Minister Kocher would primarily play into the hands of those companies that do not comply with human rights or environmental regulations and also make a profit from this, emphasizes Europe spokesman Jörg Leichtfried.

Kocher, on the other hand, said that as a result many obligations and liability risks would be passed on to small and medium-sized companies. He therefore called for renegotiations.

FPÖ and NEOS against EU proposal
Opponents of the Supply Chain Act are the Freedom Party. The NEOS consider the proposal to be too bureaucratic. In addition to the SPÖ, the Greens are also in favor of Austria's approval, but were virtually outvoted in the coalition.