France and Germany have shifted their positions on the European Union’s supply chain law, now calling for its complete repeal. The legislation, initially a cornerstone of the EU’s climate and human rights strategy, mandates that companies address forced labor and environmental impacts within their global operations.
In the article published by the Financial Times, French President Emmanuel Macron and German Chancellor Friedrich Merz argue that the regulation imposes excessive burdens on businesses, particularly as the EU contends with strong competition from China and assertive U.S. trade policies. Macron, who previously championed a national supply chain law, and Merz have both rejected a proposed one-year postponement, instead calling for full abandonment of the EU directive.
Critics of the law highlight its extensive compliance requirements, including the tracking of numerous metrics, as unaffordable and impractical, especially for smaller firms and operations in developing countries. Despite opposition from some politicians and NGOs who view the law as essential to sustainability, the debate underscores growing ideological divisions over the EU’s green agenda.
In response to mounting pressure from member states and industry, European Commission President Ursula von der Leyen has agreed to delay and simplify significant portions of the Green Deal.
Read the full article published in the Financial Times.
