Over half of the bloc’s 27 member states effectively blocked progress on the Corporate Sustainability Due Diligence Directive (CSDDD) this morning, spoiling chances for Belgian diplomats holding the Presidency of the Council to smoothly get the legislation over the finishing line before the EU Parliament goes on recess for the upcoming June elections.

Many countries – including Austria, Bulgaria, Czech Republic, Hungary, Lithuania, Luxemburg, Malta and Slovakia – joined the ranks of those already averse to passing the law – namely, Germany, Italy, Sweden, Estonia and Finland – a source close to negotiations said.

The most sobering volte-face, however, came from French officials, who are understood to have held one-to-one meetings with Belgian diplomats last week to substantially downsize the scope of the legislation, withholding their support for the legislation...

After the trilogue stage, a  so-called ‘corrigendum’ period is usually utilised to translate laws into national languages before getting the final stamp of approval – and now Belgians aim to use this timeframe to turbo-charge negotiations and clinch a new deal instead...

“To walk back on commitments or come up with more demands shows a flagrant disregard for the European Parliament as co-legislator” Wolters said at a press conference on Wednesday late afternoon. “So what happened today is very concerning.”

“The failure of member states to improve this agreement is an outrage” she added, chastising German, French and Italian officials in particular for yielding to industry lobbying...

“It is utterly deplorable that EU capitals have turned their backs on the political agreement reached in December,” Nele Meyer, Director of the European Coalition for Corporate Justice, said in a statement.

Anti-poverty group Oxfam, meanwhile, blamed the German, French and Italian governments for their failure to support the deal.