Olaf Scholz wants to abolish LkSG in 2024

The BDA organized the Employers’ Day on October 22nd. Employer President Dr. Rainer Dulger presented figures from surveys among entrepreneurs commissioned by the BDA. Accordingly, 52% of those surveyed would describe the conditions in Germany as a business location as not good and 26% as bad. The federal government in particular received poor marks. 90% of entrepreneurs and 85% of the general population said that the federal government has no well-thought-out concepts to deal with the negative consequences of the current crises for citizens and the economy. 72% of employers and 63% of the general population rated the federal government’s work as worse than that of the previous government. Dulger particularly criticized the bureaucratic hurdles: “High bureaucratic burdens, ever tighter regulation and tax burdens, which are among the highest in the world, reduce companies’ willingness to invest.” He therefore demanded of the present Federal Chancellor Olaf Scholz: “Let us roll up our sleeves together . We don’t have to fly to the moon like Neil Armstrong, but we have to have the necessary ambition to improve Germany’s location conditions again. We employers are ready to make our contribution to this. Mr. Chancellor, and I say: Germany can do it!” The 49 points of the Federal Government’s announced economic initiative would reflect a lot for the German economy. However, it must now be decided and implemented quickly.

In his speech, Olaf Scholz promised to reduce bureaucratic hurdles. It became concrete in the Supply Chain Due Diligence Act (LkSG). In a conversation with Dulger, he specifically stated that it should be abolished this year. The employer president said in response to the promise: “I will believe you when the ink is dry and it is written on my delivery note.”

In addition to the German LkSG, the CSDDD supply chain directive has already been passed at European level. The EU states must implement this into national laws by July 2026.