The position of the European Parliament’s key rapporteur on the digital euro project has shifted—he now fully supports the initiative, increasing the likelihood of its approval in a decisive vote expected by August.
The European Central Bank and the European Commission are advancing plans to launch a digital version of the single currency by 2029, aiming to reduce reliance on foreign payment services such as Apple Pay, Mastercard, and Visa, while strengthening the EU’s monetary sovereignty.
This month, European Union leaders sought to inject additional urgency into the project, calling for the legislative framework to be agreed by the end of the year.
Previously, Fernando Navarrete—the Member of the European Parliament responsible for shaping the legislature’s position on the issue—had advocated a limited rollout. He proposed using the digital euro solely as a substitute for cash in situations where internet or mobile connectivity is unavailable, excluding its immediate use for online payments and in-store transactions, as this, in his view, could hinder the development of initiatives by European banks.
In 2024, BNP Paribas and Deutsche Bank launched a European alternative to Apple Pay—the Wero system.
However, following a meeting of lawmakers on Wednesday, Navarrete began preparing a new draft report that omits his earlier proposal to introduce the online version of the digital euro only in the event that private European solutions fail, according to his office. The document is expected to be presented in the coming days.
Piero Cipollone.
The shift in position came after a majority of centre-left Members of the European Parliament—social democrats, Greens, liberals, and the Left—rejected Navarrete’s proposals at a meeting on Wednesday. Instead, they backed the European Commission’s approach, which does not distinguish between online and offline versions of the digital euro.
“I welcome the constructive spirit now emerging across political groups to reach a consensus and move forward,” Navarrete said, stressing that the digital euro must be developed to standards that allow it to coexist with private-sector solutions.
“The digital euro will become a truly useful instrument for citizens and the European economy only if it is developed in close cooperation with the private sector. Only then can it deliver genuine added value,” he added.
Navarrete’s shift in position increases the likelihood that the project will secure majority backing among lawmakers in a vote scheduled before the summer recess, although conservative and far-right parties continue to oppose it.
Even if approved, Parliament will still need to agree on the parameters of the initiative with EU member states before it can become law.
The European Central Bank aims to begin a pilot phase in 2027, followed by a full rollout in 2029.
Piero Cipollone, a member of the ECB’s Executive Board overseeing the project, said this week: “Today, people are deprived of the ability to freely use their money in roughly a third of all transactions. If you want to pay for online purchases in cash—good luck, it’s impossible… the digital euro will restore that freedom.”