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France and Germany urge EU to scrap supply chain rules

Leaders say regulation aimed at protecting workers and climate outside bloc will harm economic competitiveness

France and Germany have called for the EU to scrap a supply chain law that both countries had previously championed as a centrepiece of the bloc’s ambitious climate and human rights agenda.

French President Emmanuel Macron told business leaders gathered in Versailles on Monday that the law, which requires companies to take action against forced labour and mitigate the environmental impact of their operations outside the EU, should be taken “off the table”.

His call comes days after Germany’s new Chancellor, Friedrich Merz, said that postponing the law for one year was “at best a first step” and that its “complete repeal . . . is the next logical step”.

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