Economic Constraints Force German Minister to Temporarily Halt Implementation of Green and Supply Chain Regulations
Politics

Economic Constraints Force German Minister to Temporarily Halt Implementation of Green and Supply Chain Regulations

Olaf Lies, Minister-President of Lower Saxony (SPD), stated that due to the weak economic climate, the country will temporarily forgo implementing certain regulations, such as the Corporate Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) and the Packaging Act. In an appearance on the Politico magazine podcast “Berlin Playbook,” Lies noted, “The goal of the Supply Chain Due Diligence Act or the Packaging Act-the goal is correct. We simply cannot afford it right now.”

The SPD politician warned that imposing additional requirements could further weaken the economy. He argued, “If we continue to lose economic strength because of what we are doing, then the question of how we can make the world a little better every day no longer applies.” While not fundamentally questioning the goals of these laws, the government chief maintained that the timing was wrong. He stressed, “Therefore, I do not think we have to say that it is wrong and that we are not doing it because of that. Rather: It is not possible right now.” He added that anything that could further undermine the already modest growth during this phase must be set aside.

Furthermore, Lies criticized Mecklenburg-Vorpommern’s Minister-President Manuela Schwesig (SPD) for running a campaign that targets the Federal Government. He expressed concern that this kind of political tactic could set a negative trend for other state elections. The Lower Saxony Minister-President asserted, “Because I believe that if we all do this-if the future model for state elections is to challenge federal politics-it will not work.” He acknowledged that concrete disputes existed between Schwesig and the federal level, but warned, “It is fine to have a clear position. But if the future model is simply opposing the Federal Government, then we have a problem.”

Lies suggested that while this strategy might help win individual state elections, it would ultimately destabilize the Federal Government, which would not benefit the SPD. Consequently, he urged politicians to concentrate more on local, regional issues, cautioning that state elections must not globally resemble miniature federal elections.