EU supply chain law

Kocher is also skeptical about new proposal

Economics Minister Martin Kocher

(Bild: APA/Herbert Pfarrhofer)

As reported, the EU Supply Chain Act is still on hold after several countries - including Austria - expressed reservations about the compromise negotiated with the EU Parliament. Economics Minister Martin Kocher is also skeptical about the Belgian Presidency's new proposal.

According to media reports, this proposal stipulates that only companies with over 1000 employees (previously: 500) and over 300 million euros turnover (previously: 150 million) should be affected by the directive.

Kocher: "It must be sensible regulation"
"I believe that, in addition to this, we also need positive and negative lists, the 'safe harbor clauses', which ease the bureaucratic burden on companies," explained Kocher on Thursday. The idea behind this is that, for example, certain countries or suppliers are officially certified as safe and companies are therefore released from the corresponding due diligence obligations.

"We all want there to be no slave labor, we all want child labor to cease to exist, we all want there to be no environmental destruction in countries outside the European Union," emphasized the minister. "But there must also be sensible regulation."

EU supply chain law

• The EU Supply Chain Act is intended to hold large companies accountable if they profit from child or forced labor outside the EU, for example.
• According to the latest proposal, companies with more than 1,000 employees and a turnover of over 300 million euros would be affected.
• 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.

No uniform line in Vienna and Berlin
The main person responsible for the EU Supply Chain Act in Austria is Justice Minister Alma Zadić. In the past, she has campaigned for approval from Vienna. However, due to Kocher's rejection, there is no government position, which is why Austria has so far abstained from voting in Brussels (which is legally equivalent to a no vote).

There is a similar situation in Germany, where the liberal FDP is blocking Berlin's approval. German State Secretary Sven Giegold (Greens) welcomed the new proposal, but emphasized that he does not speak for the whole government. The German Minister of Justice Marco Buschmann (FDP) had already announced on Wednesday that he would also reject the latest compromise proposal.