Social responsibility EU Parliament rejects compromise on supply chain law
A controversial compromise to weaken the EU supply chain law in the EU Parliament has been abandoned for the time being. A narrow majority of MEPs voted in favor of not yet entering into final negotiations with the EU member states.
22.10.2025, 16:25
SDA
This means that the Parliament will have to vote again on the content of the proposal in November. It could advocate stricter or significantly weaker rules in the decisive negotiations with the EU states.
What is particularly explosive about the decision is that the EPP, which also includes the CDU and CSU, the Social Democrats and the Liberals had actually negotiated a compromise in the Legal Affairs Committee beforehand.
The three groups actually work together in a kind of informal coalition. They have a narrow majority in parliament. In the secret ballot, however, MPs from their own ranks must have deviated from the respective group line.
Among other things, it was agreed in the Legal Affairs Committee that the requirements would only apply to large companies with more than 5,000 employees and an annual turnover of at least 1.5 billion euros. Originally, the limit was 1000 employees and a turnover limit of 450 million euros. In addition, companies that violate the rules will no longer be subject to civil liability at EU level.
The European Supply Chain Act was actually passed last year. The aim 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. Following criticism from companies, parts of the directive are to be simplified even before they are applied.
