A new law on “due diligence in supply chains” will come into effect in Germany in two stages beginning in 2023, after it was passed by the Bundestag on Friday 11 June. Under the law, companies based in Germany will be partly responsible for non-compliance with social and environmental standards on the part of their direct suppliers. The law is one of the most controversial of Angela Merkel's final term as chancellor. When looking at the text in detail, it is clear that the protracted opposition from employers and Germany’s economy ministry, against the ministries of labour and cooperation, has paid off. The law that was passed represents a watered-down version of the original text.
A legislative push that almost failed. “This may have been my last speech here, but this is certainly the most important law for more justice between rich and poor – and we still have a lot to do,” said Gerd Müller, of the centre-right CSU party, who is minister of economic cooperation and development, following the vote on the Supply Chain Act (Liefferkettengesetz). For the minister, who is leaving parliament after the upcoming elections in September, and for his colleague Hubertus Heil (SPD),
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