Germany's Merz urges EU to scrap green business rules

Germany's new Chancellor Friedrich Merz on Friday called on the EU to ditch landmark new rules on environmental and human rights supply chain standards as part of its push to cut red tape for firms.

The rules have been attacked as too burdensome for businesses as the bloc throws all its energy into making its companies more competitive in the face of fierce competition from China and the United States.

"Some regulations need to be reduced," Merz said during his visit to Brussels.

"We hope that we'll be able to repeal certain directives," he said, citing in particular the Corporate Sustainability Due Diligence Directive (CSDDD).

The set of rules requires large companies to fix the "adverse human rights and environmental impacts" of their supply chains worldwide.

The European Commission, the EU's executive arm, proposed in February to postpone the CSDDD's implementation until 2028 in a bid to help companies better prepare.

But for Merz, this did not go far enough, echoing business calls for its total withdrawal.

Environmental groups defend the text, denouncing the EU's unravelling of green laws.

In February, the commission also watered-down rules requiring large firms to give investors and other "stakeholders" information on their climate impacts and emissions.

Brussels, however, argues its "simplification" push is necessary to slash red tape and help businesses in Europe thrive.

AFP