Today's repeated vote, in which the proposal for the Supply Chain Directive has now been adopted after all, will put European companies of all sizes under massive pressure. In particular, the significant increase in bureaucratic requirements due to escalating due diligence obligations will lead to considerable costs and high burdens, especially for small and medium-sized enterprises (SMEs), thus further weakening the location. "Today's decision on the Supply Chain Directive is irresponsible, the current design provides for regulations that are beyond any entrepreneurial reality. The latest version by the Belgian Council Presidency has not brought any improvements either. This decision will once again massively weaken Europe as an industrial location and put our companies at a disadvantage in international competition," said Georg Knill, President of the Federation of Austrian Industries (IV), adding: "Another shot in the arm for Europe - what is well-intentioned is now the opposite of well-done. Europe is losing its credibility."
The new regulation will become a "bureaucratic monster" that not only unnecessarily complicates day-to-day business, but also hampers investment and economic growth in Europe. "Instead of helping companies to operate sustainably, the law forces us to fight our way through a jungle of regulations, which ultimately works against the goal of sustainability and only puts European companies at a disadvantage," says Knill, adding: "Those representatives of employees and non-corporate NGOs who are applauding today should think twice about what they are happy about. We are already seeing migration and investment in more competitive locations outside Europe because the framework conditions here on the continent have become too unattractive to survive on the global markets."
The industry is committed to responsible and sustainable business practices, but is calling for practical implementation at national level. "If we want to maintain a resilient industry in Austria and Europe with innovative companies as drivers of growth and progress, entrepreneurial activity must remain profitable. Today's decision is a setback for all entrepreneurs, as additional burdens in the face of existing overregulation are counterproductive and will only accelerate the deindustrialization of Europe," warns Knill.