Overview
- The compromise raises the coverage thresholds to companies with more than 5,000 employees and at least €1.5 billion in annual turnover, up from 1,000 staff and €450 million previously proposed.
- EU-level civil liability is removed, closing a legal route for victims to sue companies and shifting enforcement toward administrative measures.
- Noncompliant firms could face fines of up to 3% of global net turnover, and the requirement for corporate climate action plans is eliminated.
- The outcome followed a parliamentary realignment as the conservative EPP won support from right and far-right parties to dilute the original text.
- Opposition lawmakers decried the deal, with SPD’s Tiemo Wölken calling it a black day for Europe and the Greens’ Anna Cavazzini saying the law was gutted, while business groups had warned the initial rules were too burdensome.