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Germany Poised to Weaken Supply-Chain Law as Cabinet Takes Up Draft

The government casts the step as red‑tape relief before EU rules supersede the national regime, a claim disputed by employers and rights advocates.

Overview

  • The draft removes the mandatory reporting requirement and restricts penalties to only severe violations while keeping due‑diligence duties in place.
  • Ministers are expected to clear the proposal today, after which it would move to parliament for debate and passage.
  • The Labour Ministry estimates annual savings of €4.1 million from the changes, compared with earlier projections of roughly €43.47 million in yearly compliance costs under the law.
  • Business groups including the BDA say the plan falls short and call for full repeal, while the Greens warn of diluted transparency and weaker human‑rights protections.
  • Oxfam labels the move a dramatic hollowing out and criticizes the rushed consultation, as the EU’s separate directive is set to replace the German law once implemented.