Now, the survival of EU supply chain oversight rules is part of the new coalition agreement between the Christian Democrats and the Social Democrats (SPD) in Berlin. In principle, the agreement binds the German chancellor to protect the bill, albeit with a promise to trim the bureaucratic burden in the text. But tensions are simmering beneath the surface.
“Many people would have benefited from the law, but their voices were not loud enough — while the bureaucracy debate overshadowed the debate,” said one German government official, granted anonymity to speak freely about internal political dynamics.
The French U-turn
Macron’s position was far less consistent than Merz’s. He performed a spectacular U-turn to become the No. 1 opponent of a text he and his governments had advocated, at least publicly.
Having been one of the first countries to enact a national law banning human rights abuses and environmental breaches from supply chains, France initially cast itself as a top supporter of the text and made it a priority when it held the rotating Council presidency back in 2022. Then, last year, Paris piggybacked on Berlin’s opposition, requesting that the law apply to fewer companies.
Fast forward to 2025, and the French have become fierce critics of the text. Earlier this year, POLITICO revealed that Paris had asked the European Commission to indefinitely delay the text. That was before Macron told a roomful of business CEOs gathered in Versailles from all over the world that the text should be thrown out altogether.
While the president’s shift is music to the ears of France’s industry lobbies, it has also triggered an internal revolt from his allies who warned against sacrificing green and anti-forced labor rules under pressure from business.