🇪🇺 EU Leaders Call for Cancellation of Supply Chain Audit Law
📌 Overview of the Law
The Corporate Sustainability Due Diligence Directive (CSDDD) is a proposed EU law that aims to hold large companies accountable for ensuring human rights and environmental standards in their global supply chains.
🇫🇷🇩🇪 France and Germany: A Bold Rejection
French President Emmanuel Macron and German Chancellor Friedrich Merz have jointly urged the European Commission to scrap the proposed directive.
“We fully agree with Chancellor Merz... The CSDDD and similar laws should be removed from the table entirely, not just delayed.” — Emmanuel Macron
Their argument? The regulation places heavy burdens on European businesses, threatening their global competitiveness — especially against giants like China and the United States.
💼 Impact on European Businesses
The law would force companies to:
- Audit supply chains for risks.
- Take action against potential human rights or environmental violations.
- Report compliance in regular filings.
While it promotes ethical sourcing, many firms fear high compliance costs and bureaucratic hurdles.
🌍 Balancing Sustainability and Competitiveness
The EU faces a dilemma: enforcing ethical standards while supporting businesses in a highly competitive global market.
Calls for reform suggest the law might be modified or delayed rather than implemented in its current form.
📅 What Happens Next?
The EU will likely revisit the law in upcoming sessions. A consensus among member states will be essential to decide whether it should be repealed or revised.