EU Commission Considers Delay of Controversial Supply Chain Law

Wed 26th Feb, 2025

The European Commission is contemplating postponing the implementation of the contentious EU supply chain law, which was established just last year. Under the leadership of Ursula von der Leyen, the Commission announced plans to extend the initial implementation deadlines by one year, moving them to 2028. Additionally, the proposal includes a series of simplifications intended to alleviate the regulatory burden on businesses.

This adjustment is projected to yield annual savings of approximately 320 million euros. Originally, the law mandated EU member states to convert the new regulations into national legislation within a two-year timeframe. The primary objective of the supply chain law is to enhance global human rights protections, holding large corporations accountable for any involvement in human rights violations, such as child labor or forced labor.

Despite its noble intentions, the law has faced significant opposition from various sectors of the business community. Critics argue that the requirements imposed by the legislation are excessively stringent, placing an undue bureaucratic burden on companies and undermining Europe's competitive edge in global markets.

As the Commission works to revise the law, it will need to secure support from EU member states and the European Parliament to implement these changes effectively. The ongoing debate surrounding the supply chain law underscores the tension between the need for corporate accountability in human rights practices and the desire to maintain a favorable business environment within Europe.

As stakeholders await further developments, the conversation around the supply chain law continues to evolve, reflecting broader concerns about corporate responsibility in an interconnected world.


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