EU supply chain law faces major obstacles in Germany

Significance The vote was lost following Germany’s decision to oppose the directive, which encouraged others to abstain. There are only a few weeks left for the Council to vote again on the proposals before June’s European Parliament elections. Impacts The manufacturing, automobile and pharmaceutical sectors are among the industries that would be most affected by the law. Growing pushback against environmental policies in the EU will undermine Brussels’ capacity to shape international climate policy. If the EU law dies, different national policies would leave an uneven EU playing field for business responsibility for supply chain abuses.