German Supply Chain Act stalls in Bundestag, leaving firms in regulatory limbo
Executive summary: The German coalition government has been unable to advance the Supply Chain Act in the Bundestag for six months, with parties disagreeing on its future. The delay creates regulatory uncertainty for companies subject to the law, affecting supply chain compliance and investment decisions.
Who is involved: The CDU/CSU‑SPD coalition, Chancellor Olaf Scholz, Bundestag legislators, and German industry groups.
Likely next: The Chancellor may be called to break the impasse, potentially leading to a vote or revised proposal in the coming weeks.
The coalition government has been unable to advance the Supply Chain Act for six months, with parties split over its future. This legislative deadlock creates regulatory uncertainty for companies that must comply with mandatory human‑rights and environmental due‑diligence rules. As a result, firms face planning delays and may reconsider investment locations, while investors watch for signs of resolution.
Timeline
- — Regierung: Seit sechs Monaten liegt das Lieferkettengesetz im Bundestag – und keiner weiß, wie es weitergehen soll (Handelsblatt)
Analysis — what this means
Likely next events
- Chancellor Scholz may convene a coalition meeting to resolve the legislative deadlock.
Sectors affected
- Manufacturing
- Automotive
- Retail
- Logistics
Regulatory implications
- Possible revisions to the Supply Chain Act's scope and timelines.
- Heightened scrutiny on corporate due diligence practices.
Historical parallels
- Germany’s initial Supply Chain Act enactment in 2021.
- France’s 2019 duty of vigilance law as a precursor.
- EU’s Corporate Sustainability Reporting Directive (CSRD) rollout.
Key entities
Sources
- Regierung: Seit sechs Monaten liegt das Lieferkettengesetz im Bundestag – und keiner weiß, wie es weitergehen soll — Handelsblatt
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