Scholz must not surrender to Lindner on the CSDDD

In December, European policymakers from across the political spectrum agreed to help stop some of the world’s worst abuses — like child labour — through a game-changing law that businesses and climate activists alike could agree on.

It would finally create a fair, equal set of rules for big companies, ensuring that they’re not tied to human rights abuses and environmental destruction.

The law should have passed without drama last week, in what is usually a “rubber stamping” process between national governments in Brussels.

But the vote was pulled at the last minute after the FDP and its leader Christian Lindner forced Chancellor Olaf Scholz’s hand, and Germany is no longer voting in favour of the law — despite the support of the German public, major players in the business world, and the majority parties in government.

Germany was previously a champion of the law, and Scholz’s party, SPD, supports it. The Corporate Sustainability Due Diligence Directive has been years in the making and is in a time of turmoil, it is a bold, hopeful step towards a fairer future.

And what it would do is not divisive in Germany.

Everyone on board, FPD to torpedo?

A broad-based survey conducted before the draft law was published shows over 80% of Germans support this law’s objectives — and say that companies should be liable if they damage the environment outside of the EU and that they should be responsible for preventing human rights violations in their global operations.

Many of Germany’s largest companies — including Aldi Süd and BMW Group (via associations representing them) have also come out in support.

And it’s not just big business which backs it — it’s smaller companies too. Earlier this week the world’s leading network of SMEs, representing over 700 businesses in Germany, urged politicians to pass the law.

It’s also championed by Chancellor Scholz’s own party.

But the FDP — a liberal centre-right party which has just 4% of the German popular vote — has played a divisive card and is threatening to sink the law forever.

Ministers from both senior coalition parties lamented the FDP’s move, which means the law now hangs in the balance.

Minister for Foreign Affairs Annalena Baerbock of The Greens hinted at the negative signal this sent for Germany’s position in the EU, noting “We have a responsibility in Europe. If we don’t keep our word in Brussels, we will no longer be trusted”, while the SPD’s Labour Minister Hubertus Heil said the decision was “a mistake”.

Given our government’s power in the EU voting process, this has thrown the future of the law into jeopardy, and there is now a very real chance that this law will fail if Scholz does not support it in a new vote this week.

Bravery and common sense

The law is popular with the German public. It is popular with German businesses. It is popular with the majority of partners in the German government.

Every level of German society recognises this law is a key step towards a fairer and more sustainable world, which also makes practical sense.

It is unpopular with one party, run by a man who seems to be attempting to force his way into political relevance by creating needless controversy. 

Chancellor Scholz must recognise this, seize the moment and use his overriding power to do what is democratic, just and necessary by overruling his junior coalition partner.

By now, we are not talking about a single law anymore. we are talking about Europe delivering its promises.

As the polycrisis hits, liberal democracies are under unprecedented pressure to prove they can work towards a common good. Europe should be championing this, not falling out under the pressure of a few uncooperative liberals. It is time for Scholz to step up and end the German embarrassment in Strasbourg.

This is not an activist agenda — it is European integrity and common sense.

Luisa Neubauer is a climate justice activist and leader of the German Fridays For Future climate movement.

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