In a shocking turn of events, European leaders Macron and Merz are spearheading a movement to abolish a key EU law on ethical supply chains. The Corporate Sustainability Due Diligence Directive, a law that mandates companies to monitor their global suppliers for human rights and environmental violations, is under fire.
French President Macron made a bold statement at Versailles, declaring the need to scrap the controversial directive entirely. His sentiments were echoed by German Chancellor Merz, who called for the “complete repeal” of the law during a recent visit to Brussels.
The potential abolition of the directive would mark a significant shift towards a more pro-business and anti-green agenda in the EU. This move comes amidst a broader trend of simplification efforts that aim to roll back regulations introduced as part of the European Green Deal.
Businesses have long criticized the sustainability directive as overly burdensome, requiring extensive monitoring and enforcement throughout their supply chains. While the law was initially slated for revision and delay, the prospect of complete repeal is now on the table.
Beyond its impact on businesses, the decision to scrap the directive could have implications for transatlantic trade negotiations between the EU and the US. President Trump’s administration has targeted the supply chain directive as a barrier to trade, and the EU’s willingness to abandon the law could be seen as a concession in ongoing trade talks.
However, convincing EU lawmakers to do away with the directive entirely may prove to be a challenging task. The issue has sparked debate within Germany’s coalition government, with conflicting views between the CDU and SPD. While the parties have reached a compromise on the national due diligence law, the fate of the EU directive remains uncertain.
Macron and Merz will need to garner support from other EU member states to push for the abolition of the law. In the European Parliament, centrist coalitions are unlikely to fully back the move, raising concerns about potential alliances with far-right groups that could violate established principles.
As the future of the Corporate Sustainability Due Diligence Directive hangs in the balance, the political landscape in Europe is set for a showdown over the fate of this contentious green law.
