TL:DR – European Parliament lawmakers struggle to reach compromise on digital euro
• European Parliament lawmakers are struggling to compromise on the digital euro’s design, jeopardising the project’s legislative path, as reported on 03 February 2026.
• Rapporteurs indicated strong disagreement about the digital euro’s framework during a meeting on Tuesday, according to an email exchange.
• EPP rapporteur Fernando Navarrete proposed an “e-cash” model strictly for offline use, without retail accounts on the ECB ledger.
• S&D and Renew Europe support retail accounts on the ECB ledger under the European Commission’s proposal.
• A vote on the digital euro is expected in May, but internal divisions may hinder its approval.
Exclusive: Digital euro faces political deadlock in Brussels
Lawmakers at the European Parliament are facing difficulties in reaching a compromise on the design of the digital euro, jeopardising the project’s legislative trajectory. This development was reported on Tuesday during a meeting where strong disagreements on the fundamental nature of the digital euro were illustrated, according to sources familiar with the discussions.
The urgency of this matter arises as the European Parliament is the only institution yet to position itself on the digital euro, following an agreement among EU countries in December. A vote is anticipated in May during the European Parliament’s plenary session, but ongoing divisions among legislators could hinder its approval.
European People’s Party Proposes “E-Cash” Model
During the Tuesday meeting, Fernando Navarrete, the European People’s Party rapporteur leading the discussions, introduced a new proposal referring to the digital euro as “e-cash”. This model is intended solely for offline payments and as a “tokenised digital form” of cash that would not provide users with retail accounts on the European Central Bank (ECB) ledger.
In contrast, the Socialists and Democrats (S&D) and Renew Europe advocates support the European Commission’s proposal, which allows users to hold retail accounts on the ECB’s ledger for both online and offline transactions. S&D shadow rapporteur Nikos Papandreou emphasised the importance of Europe maintaining control over its critical infrastructure amid significant geopolitical changes.
Future Negotiations Dependent on Parliamentary Agreement
The European Parliament’s failure to conclude discussions on the digital euro is a significant delay in the legislative process. Following any potential approval of the digital euro in the plenary, the European Commission, the European Parliament, and the European Council would engage in negotiations for a political agreement; however, these discussions cannot commence until the Parliament finalises its stance.
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