Overview

• Ministers outlined a plan to award most federal contracts from €50,000 upward only to companies that follow collective agreements on wages and working hours.
• Labour Minister Bärbel Bas defended the proposal as ensuring fair competition and said implementation should be as unbureaucratic as possible.
• The draft foresees a new supervisory authority and an optional certification to verify companies’ compliance, with detailed verification rules still to be set.
• The bill excludes defence- and security-specific procurement, a carve-out criticized by Greens, the Left and the Ver.di union as weakening its impact.
• Employers’ groups labeled the proposal an anti-growth measure that burdens SMEs and risks legal issues, while CDU lawmakers called for revisions before any final vote requiring Bundesrat consent.