Federal Minister for Economic Affairs Robert Habeck has proposed a two-year suspension of the German Supply Chain Act. This initiative is causing unrest within the traffic light coalition. While FDP leader Christian Lindner welcomed the plan, the SPD expressed opposition. Habeck suggested that the suspension of the law could be part of a larger package to strengthen the economic location.

The economy has sharply criticized the law since its inception. The bureaucratic documentation requirements and the difficulty of implementation are particularly criticized. In light of the stagnant German economy, Habeck advocates for a pause until the corresponding European directive comes into effect. "That would be the best. I consider that absolutely justifiable," he explained at the Family Business Day at the Adlon Hotel in Berlin.

The Chief Executive of the German Chamber of Industry and Commerce, Martin Wansleben, also called for the suspension of the German Supply Chain Act until European standards apply. He argued that the German economy should no longer be unilaterally burdened by national regulations.

FDP leader Lindner welcomed the proposal and described it as a "building block for the economic turnaround." He emphasized that a suspension of the German Supply Chain Act and a streamlined implementation of the European directive would be sensible. Carl-Julius Cronenberg, SME expert of the FDP parliamentary group in the Bundestag, urged Labor Minister Hubertus Heil (SPD) to act quickly. "With the suspension, we are creating a breathing space for the SMEs.

The German Supply Chain Act in force since the beginning of 2023 obliges companies to improve the protection of the environment and human rights along their global supply chains. The new EU directive goes further in a crucial point: it provides for corporate liability for damages, while the German law only provides for sanctions by the Federal Office for Economic Affairs and Export Control (Bafa).

A spokeswoman from the SPD-led Ministry of Labor emphasized that exploitation should not be a business model and that implementation with minimal bureaucracy should always be a priority. Martin Rosemann, labor market policy spokesman for the SPD parliamentary group, expressed astonishment at Habeck's demand and criticized that human rights should not be sacrificed to curry favor with entrepreneurs.

A spokesperson for the Ministry of Economic Affairs explained that Habeck has been publicly advocating his position since last autumn and wants to avoid redundancies in the reporting obligations of companies. However, within the Green Party, there are also strong supporters of the existing law.

A total of about 900 jobs are being cut as a result of the insolvency. Around 11,900 jobs remain, explained a spokesperson for the insolvency administrator.

The discussion about the supply chain law highlights the tensions within the traffic light coalition and the differing priorities in economic policy. While some push for relief and competitiveness, others see the moral obligation and the protection of human rights in supply chains as indispensable.