Changes to the EU Supply Chain Act provide some relief for businesses

The Federation of Austrian Industries (IV) welcomes the concessions reached regarding the EU Supply Chain Act as fundamentally positive. “The basic idea behind a supply chain law—to ensure international standards and human rights—is understandable. However, the original draft went too far in many areas and would have burdened our companies with massive bureaucracy. In a geopolitically tense environment, additional requirements and bureaucratic hurdles would create further competitive disadvantages in international markets. It is therefore a positive sign that a solution has now been found that is more sustainable for all parties and is also more closely aligned with the realities of business,” said IV Secretary General Christoph Neumayer.

“The urgency of quickly relieving the burden on Europe, and Austria in particular, is evident. We need a regulatory framework that enables responsible corporate governance without overwhelming SMEs and industry with excessive and costly requirements and forcing them out of the market. It is now crucial that the announced simplifications are credibly implemented and legal certainty is established,” emphasizes Neumayer.