Too much bureaucracy – EU Supply Chain Law must be tested

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While EU loses economic power, growth in the US and China takes place. Many companies find huge bureaucracy as a major burden. The EU committee wants to present its aid plans this week. In the “Krone” discussion campaign, campaign for local top managers against the Supply Chain legislation and other bureaucracy samples.

It has already been decided, but in the economy there is more hope that politicians will impose the supply chain law and make them harmless. From the Middle -2026, companies are now responsible for compliance with certain standards in their supply chain. This should strengthen the protection of the environment and human rights. There is also no objection to the goals, but because the directive is in force, countless business representatives have criticized the practical implementation.

Proposal for a “block list”
“The assessment must be a task of the state. Politics simply rolls to the companies, “Günther ofner, the head of Vienna Airport, criticizes. Initially, thousands of companies have to check in parallel thousands of suppliers whether they are adhering to standards.

Roman Billiani, a board member of Mayr-Melnhof Karton AG, also has little understanding for this. He proposes to introduce a block list. “All suppliers from third countries who do not meet European standards must appear on the list,” the manager said. Composite boss Michael Strugl, Industrial Kari Ochsner, Porr-Boss Karl-Heinz Strauss and OFNER, also in a joint initiative for this project.

Billiani fears that many large companies would dilute their supplier relationships with the current regulation. “With this effort, many will try to rely on a few major suppliers. That of course affects the smaller one. The EU emphasizes that the Supply Chain directive only affects large companies, but many smaller companies are also mentioned in the very complex supply chains, which are then confronted with the bureaucratic rules.

Another danger: because China and the United States have fewer strict rules, they could then do the company that European companies escaped due to complicated regulations. “We already see that China and the US have clearly been overtaken. If Europe finally does nothing about this exuberant bureaucracy, it will continue, “says Ofner. About 30 years ago, Europe and the United States were still out of the part of the share of the global economic output and China was far below it. In the meantime, the EU economic power has shrunk in relationship. Now you are on the same basis with China and 35 percent behind the United States.

EU committee is presenting plans this week
However, the EU committee has already publicly admitted that the reporting obligations are too high and a reduction in bureaucracy of 25 percent announced. Plans will be presented this week. Fewer reporting obligations, the release of competition rules and also changes in the Lief -Chain Act must be imminent.

“If the EU is really serious about reducing bureaucracy, the single laws that have already been adopted must be closed again and reduce them considerably. In any case, no new regulatory initiatives may be taken until the 25 percent is reached, “says Ofner.

President Ursula von der Leyen committee wants to create an omnibus regulation that summarizes some bureaucracy cases. “Now the bureaucracy is only increasingly standing. It should actually fall urgently, “said the airport board.

At the moment there are also signals that the last word has not yet been spoken about the already decided Supply Chain legislation. Recently the green German economic minister Robert Habeck also campaigned against the plans and the Supply Chain Act is exaggerated in its current form. Only a few days ago, the French minister Benjamin Haddad campaigned against the law, so two eu -economic size are already for redeganging.

The signs also changed in Austria in January. In the three negotiations, a critical attitude towards the Supply Chain Law failed at the Spö, but FPö and ÖVP are against “anti-location” provision in the law. Orner and Billiani hope that the future government will work for less EU bureaucracy in the council.

However, the bureaucracy is not only outover balance in the supply chain law. The many reporting obligations in terms of sustainability are also a thorn in the side of the economy. “In the meantime, entire departments are writing these reports,” said Ofner. Even with a complete abolition of sustainability report, the reporting obligations in Europe would still be considerably stricter than in the United States as a result of Stock legislation.

EU is regulating world champion
Billiani also criticizes the deforestation regulations and hopes that it will be discussed again. The European People’s Party recently insisted. “The excessive requirements are a competitive disadvantage for European companies,” said the board of directors of the packaging giant. While other countries are already reducing charges for companies, Europe is still waiting – also because you are sometimes still in a location that is too easy.

Orer demands that the “golden platform” (overfilling the EU guidelines, comment) to eliminate and reduce reporting obligations “. At the moment there are 400 new legal files of Brussels in the pipeline. The past five years have been in the last five years United States, however, issued about 5,500 new legal files in the EU.

Source: Krone

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