The European Parliament has significantly weakened the proposed EU Supply Chain Act in a vote Thursday, sparking condemnation from progressive lawmakers and raising concerns about human rights and environmental protections. A coalition comprised of the center-right European People’s Party (EVP), including German conservatives CDU and CSU and far-right factions – notably including elements sympathetic to parties like the AfD – voted in favor of a considerably diluted version of the legislation.
Under the revised proposal, only companies averaging above 1,750 employees and generating annual revenues exceeding €450 million will be required to conduct social and environmental due diligence. This represents a dramatic reduction in scope compared to earlier drafts, which aimed for wider coverage.
The vote followed a failed attempt in October to pass a similar weakening amendment and resulted from stalled negotiations between the Social Democrats (S&D) and the EVP. EVP faction leader Manfred Weber (CSU) defended the move, arguing that it would relieve the burden on small and medium-sized enterprises, foster growth and reduce bureaucracy. He emphasized a commitment to European competitiveness.
However, the outcome drew sharp criticism from the S&D, Greens and Left factions within the Parliament. René Repasi (SPD), S&D coordinator for the Legal Affairs Committee, expressed deep disappointment, accusing the EVP’s negotiating stance as obstructing compromise and actively “torpedoing” efforts towards a more robust framework. He characterized the outcome as enabling a coalition between conservatives and “antidemocratic forces.
Green MEP Terry Reintke deplored the decision, stating that “Europe lost today” and accusing the EVP of collaborating with the far-right to undermine protections against child labor and environmental degradation. She directly implicated Weber in facilitating this “dangerous alliance.
Left MEP Arash Saeidi (La France Insoumise) condemned the move as a dangerous deregulation prioritizing corporate interests at the expense of human rights and climate action, framing it as a deliberate weakening of due diligence obligations and a “gift” to multinational corporations.
The move echoes a prior proposal from EU member state representatives in June 2025, which sought to lower the threshold to companies with over 5,000 employees and annual revenues exceeding €1.5 billion – a measure expected to reduce the number of affected companies by approximately 70%. Furthermore, the revised legislation diminishes the extent to which companies must actively monitor their entire supply chain for adherence to fundamental human and labor rights and environmental standards.