The federal cabinet approved a draft that eliminates company reporting under the 2023 due-diligence law and limits penalties to severe violations while keeping core duties in place. Berlin says the national rules will remain in force without interruption until EU legislation supersedes them, positioning the change as an interim step. Human-rights groups including Oxfam and Misereor condemned the plan as a dramatic hollowing-out of protections, and Greens warned of weakened transparency. Employers’ groups called the relief insufficient, with the BDA criticizing the continued burden and the BDI pushing for a full suspension until EU rules apply. The draft now proceeds to parliament as EU negotiations continue on narrower scope and lighter reporting, and NGOs objected to a one-day consultation window on the German changes.
