The Economic Division of The Union will Thwart Severe Corporate Sanctions
Germany: CDU/CSU Affiliate Critiques Proposed Integrity Economy Act
Berlin - The economic wing of the CDU and CSU, the Mittelstands- und Wirtschaftsunion (MIT), has voiced opposition to the federal government's planned legislation for harsher penalties on companies. In a resolution, the MIT federal board urges CDU/CSU parliamentary group members and Union-controlled federal states to reject the law in the Bundestag and Bundesrat, as reported by the "Handelsblatt" (Monday edition).
The federal states' chamber demands revisions to the proposed "Act to Strengthen Integrity in the Economy." The legislation, according to Union politicians, criminalizes companies for crimes committed by individual employees, potentially affecting innocent employees and shareholders. The laws' critics argue that it would overburden already overloaded public prosecutors' offices.
In times of the most severe economic crisis since World War II, with hundreds of thousands of companies struggling to survive, the MIT board resolution states that this is not a suitable moment for such a law. The proposed legislation contradicts the burden moratorium agreed upon by the grand coalition in April.
The Mittelstandsunion denounces the planned law as creating a new sanctions regime with a strong criminal law emphasis. Under this law, public prosecutors would be required to initiate proceedings against the company itself in cases of crimes committed by individual employees within the company. The MIT rejects such a "disguised corporate criminal law as a corporate sanctions law."
Small and medium-sized enterprises (SMEs) may face additional administrative tasks, legal uncertainty, complexities, and potential competition challenges from stricter regulations. Data protection and privacy concerns might arise from the collection and sharing of business data. Overregulation and its impact on innovation and growth are also significant concerns. The precise criticisms from the MIT hinge on the specific provisions of the proposed Act and the MIT's official statements.
- In contrast to the proposed Integrity Economy Act, the Mittelstands- und Wirtschaftsunion (MIT) criticizes that it may excessively burden small and medium-sized enterprises (SMEs) with additional administrative tasks, legal uncertainties, and potential competition challenges from stricter regulations.
- During an economic crisis as severe as World War II, with numerous companies fighting to survive, the MIT argues that the current moment is inappropriate for the implementation of such a law, as it contradicts the burden moratorium agreed upon by the grand coalition in April.
