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Bundestag Opens Debate on Easing Germany's Supply-Chain Law, Sends Rival Plans to Committee

The government proposes scrapping reporting duties with sanctions limited to serious violations as a transitional step before EU rules take over.

Overview

  • Lawmakers held a first reading on January 16 for a government bill to revise the Supply Chain Due Diligence Act, with the package now moving to committee scrutiny.
  • The draft keeps core due‑diligence duties in place but removes the reporting obligation and restricts penalties to severe breaches.
  • An AfD motion seeks to repeal the law entirely, while a Die Linke motion calls for preserving and strengthening it.
  • The government frames the revisions as interim measures ahead of replacing the national law with legislation transposing the EU Corporate Sustainability Due Diligence Directive by 2027.
  • Business groups criticized the proposal as insufficient relief and urged Germany to apply EU thresholds that would cover only companies with more than 5,000 employees and €1.5 billion in global revenue.