EU supply chain law

Kocher announces abstention in the vote

Economics Minister Martin Kocher (ÖVP)

(Bild: Peter Tomschi)

Economics Minister Martin Kocher (ÖVP) has now made a statement on the vote on the EU Supply Chain Act on Friday. He will abstain, it was announced on Wednesday afternoon. The current draft is not feasible.

It would also have a negative impact on companies in the EU and also on companies in the global South (e.g. countries in Africa and Latin America). Many obligations and liability risks would be passed on to small and medium-sized companies. "99.6 percent of the Austrian economy is made up of SMEs. There is a risk that small and medium-sized enterprises worldwide will be forced out of international supply chains."

At the same time, Kocher made it clear: "We support the directive and want an implementable basis." He would therefore advocate a return to the negotiating table in order to achieve improvements in the text. There are already concrete proposals for this.

There is a risk that small and medium-sized enterprises worldwide will be forced out of international supply chains.

Wirtschaftsminister Martin Kocher (ÖVP)

Germany also wants to abstain
 The German government may have set an example by also wanting to abstain. Since then, a number of other EU states are said to be considering this. A majority is required for the law to be adopted. The supply chain law is intended to hold large companies accountable if they profit from child and forced labor outside the EU, for example. In addition, large companies must draw up a plan on how they will comply with the Paris climate targets.

Kocher's position has now been endorsed by the Austrian Federal Economic Chamber and the Federation of Austrian Industries. "From the point of view of the WKÖ and the IV, the EU Council has an immature directive that only creates uncertainty for companies and presents itself as a bureaucratic monster (...)", it says in a joint press release, for example.

With a strong supply chain law, we could finally take effective action against the exploitation of millions of children.

Justizministerin Alma Zadic

Domestic companies are already internationally renowned for their high ethical and social standards. For small companies, however, it is not possible to check "whether a supplier's supplier is possibly violating the requirements of the directive along the supply chain."

Disagreement with coalition partner
As reported , Justice Minister Alma Zadic, numerous environmental protection organizations, NGOs and other political actors had previously campaigned for the EU Supply Chain Act and Kocher's approval. "With a strong supply chain law, we could finally take effective action against the exploitation of millions of children," said Zadic, for example. The Chamber of Labor sees only a small administrative burden. Catholic bishops also appealed for approval.