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European Parliament Backs Rollback of Corporate Due Diligence Rules

A right-leaning majority advanced a “simplification” mandate that now proceeds to trilogue negotiations.

Overview

  • MEPs voted 382–249 to approve an omnibus package that scales back the EU’s corporate duty-of-vigilance framework.
  • Coverage would narrow by raising thresholds to companies with more than 5,000 employees and over €1.5 billion in annual turnover, while mandatory climate transition plans are removed.
  • The EU-level civil liability regime is scrapped, shifting responsibility to national laws and leaving sanctions to member states to define.
  • The outcome rested on the European People’s Party aligning with far-right groups, with additional defections from 17 Renew and 15 Socialists & Democrats lawmakers.
  • The Parliament’s position is not final, as trilogue talks with the Council and Commission now begin, with NGOs warning of a race to the bottom and weaker private-sector climate action.