This news comes after a secret vote among EU ambassadors in Brussels, which put the introduction of the proposed legislation in doubt. The biggest stumbling block appears to be that the measure would apply not only to very large companies (with thousands of employees), but also to medium-sized companies (with several hundred employees).
Dutch MEP Lara Walters (S&D/PvdA), who acted as EP rapporteur, condemned the fact that the EU countries did not submit any text proposals during the trilogue negotiations and are now trying to shift the blame onto the (previous) Spanish and (current) Belgian EU presidencies.
Recently, German and French liberal ministers in EU meetings blocked almost finalized and negotiated proposals because they were considered obstructive or damaging to companies in a free market economy. The same situation occurs with the directive on the protection of platform workers. Earlier, this threatened to happen with the (future) ban on the sale of petrol cars and stricter rules against exhaust emissions.
This opposition from liberal trade ministers has major implications and will likely result in the proposal being postponed, as the outcome of the European elections (June) and the formation of a new European Commission (December) must first be awaited. Only in March and April are there still ministerial councils scheduled where decisions might be made.
The due diligence legislative proposal is partly intended to hold companies accountable for violations of human rights and environmental standards in their supply chains (both of their suppliers and their customers). Workers from various sectors have reacted with disappointment to the news, as they had hoped for stricter rules to improve working conditions and eliminate harmful practices.
The European Commission had hoped for broad support, given the growing concern about issues such as modern slavery, child labor, and environmental pollution in global supply chains.
The industry and business communities were divided on the issue. Some companies and interest groups objected, claiming it would damage the competitiveness of European companies and bring bureaucratic red tape.