Overview

• The cabinet-approved bill removes mandatory company reports under the Lieferkettengesetz and keeps due‑diligence duties in place, with penalties restricted to severe violations.
• Ministers frame the step as cutting bureaucracy and avoiding duplicate reporting, with the national regime set to remain in force until EU legislation replaces it.
• Human-rights groups such as Oxfam and Misereor call the plan a dramatic hollowing of enforcement, while the Greens warn of diluted protections in global supply chains.
• Employer groups, including the BDA, say the relief falls short and reiterate calls for full repeal; the labor ministry estimates only about €4.1 million in annual savings versus earlier compliance costs of roughly €43.47 million.
• EU-level negotiations continue on narrower obligations focused on direct suppliers, less frequent reporting, and limited civil liability, with AFP reporting a staggered rollout starting July 2028 after a one‑year delay.