Brussels makes one thing better than anywhere else: regulation. Reporting duties, due diligence checks, ESG disclosures, and endless frameworks for climate and labour compliance – if it can be mandated, Brussels has a directive for it. Now Brussels has outdone itself with a directive that makes companies legally liable for the behaviour of every entity in their global supply chain. It’s due to come into force in 2027. The law has triggered a rare backlash. This week, Emmanuel Macron has called for it to be taken ‘off the table’. Germany’s Chancellor Friedrich Merz has also demanded its repeal. But it seems even the bloc’s two most powerful governments can’t stop this from going through.
Even the bloc’s two most powerful governments can’t stop this from going through
On paper, the EU is committed to reducing regulation. In 2024, the former Italian prime minister Mario Draghi delivered a report calling for the EU to reduce obstacles for businesses and to have leaner regulation.
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