Key CSDDD vote delayed again after late split over SMEs

Submitted by Admin on Mon, 03/11/2024 - 02:33

Today’s make-or-break vote by EU member states to approve the Corporate Sustainability Due Diligence Directive (CSDDD) has been called off, scuppering hopes that compromises made this week would be enough to secure the future of the bloc’s due diligence regime.

It is understood that Italy and Austria raised objections yesterday over administrative burdens which could be foisted on SMEs by powerful buyers that will need to carry out mandatory human rights and environmental due diligence across their supply chains.

The vote today was already seen as a last chance saloon by many, as the CSDDD legal text would still need to be reopened and approved by MEPs coming to the end of their term. EU lawmakers had already signed off on the text before extensive revisions were demanded by member states.

Parliamentary approval is not expected to be a stumbling block, with around 50-55 percent of MEPs thought to be in favour of the CSDDD.

As it stands, the vote is being rescheduled for next week and could take place on Wednesday or Friday when member state representatives are due to meet. EU lawmakers will have to endorse the text in the same week before all legislative activity is put on hold ahead of European parliamentary election this June.

Read the entire article here.