Disagreement unfolds over legislation concerning corporate criminal liability
Germany's Grand Coalition Divided Over Proposed Corporate Criminal Law
Berlin (dts Nachrichtenagentur)—A disagreement has arisen within Germany's Grand Coalition over the proposed legislation for stricter penalties against companies, as reported by Handelsblatt on Monday. The economic wing of the CDU and CSU seeks to halt the project, while the SPD remains adamant about implementing the agreed-upon corporate criminal law within the coalition agreement.
Carsten Linnemann (CDU), the deputy head of the Union faction, expressed concern to Handelsblatt, stating that the planned corporate criminal law would amount to "massive additional bureaucracy." Linnemann voiced concern that this added burden would send a disheartening signal, particularly during a time of economic crisis, when numerous family businesses struggle to stay afloat.
Conversely, SPD legal policy spokesman Johannes Fechner highlighted that Federal Minister of Economics, Peter Altmaier (CDU), had also agreed to the proposal by Federal Minister of Justice, Christine Lambrecht (SPD). Fechner emphasized the importance of protecting honest companies, asserting that those opting not to comply with the law should not receive a competitive advantage. According to Fechner, the issue centers around eliminating black sheep within the corporate sector. He also underscored the Lean effort for small and medium-sized enterprises.
The federal government aims to address economic crime more effectively by introducing the new corporate criminal law. The bill stipulates changes in the liability of national and multinational corporations and allows for future ex officio prosecution, higher fines, and registration in a sanctions register kept by the Federal Office of Justice. The Bundesrat has requested changes to the bill, with concerns revolving around the burden on SMEs and the potential overload of the judiciary.
While specific details regarding this internal dispute are not directly reported, this scenario underscores broader political and social trends in Germany, such as protests against military production, and legal disputes over deportations. However, it does not directly address the legislative dispute over corporate criminal law.
SMEs face potential increased costs for legal advice, compliance programs, and risk management if the proposed bill is implemented. Ambiguities in the legislation also raise concerns about predictability for businesses, while fears persist that stricter rules may put German SMEs at a disadvantage compared to international competitors. Proposed changes to the bill include graduated liability, incentives for compliance, and government-funded training and legal guidance for SMEs to help them adapt.
In summary, the Grand Coalition's internal debate over the planned corporate criminal law focuses on addressing grand corruption and systemic corporate crime while minimizing the impact on SMEs. Proposed solutions aim to mitigate costs, provide clearer legal definitions, incentivize compliance, and offer support for smaller businesses.
- The disagreement within Germany's Grand Coalition over the proposed corporate criminal law, designed to combat grand corruption and systemic corporate crime, has raised concerns among SMEs about potential increased costs for legal advice, compliance programs, and risk management.
- The political discourse surrounding the corporate policy-and-legislation, particularly the Grand Coalition's internal debate, is closely intertwined with the general-news landscape in Germany, as the issue of corporate responsibility often intersects with other broader social and political topics, such as military production and legal disputes over deportations.
