EU Parliament Committee Approves Digital Euro Framework

On 23 June 2026 the ECON Committee of the European Parliament voted 43-14-1 to adopt the draft regulation establishing a digital euro, a central-bank-issued electronic currency for online and offline payments while preserving cash.

The EU is accelerating the development of the digital euro to reduce its dependence on tech and financial giants

The EU cites reliance on Visa and Mastercard for 61 % of euro-area card payments as a strategic risk, prompting a sovereign digital currency to curb geopolitical exposure.

Digital Euro Moves Forward: Europe’s Plan to Challenge Visa and Mastercard Dominance

Key actors include the European Central Bank, which will run the infrastructure; MEP Pasquale Tridico (The Left) and rapporteur Fernando Navarrete (EPP); and the European Banking Federation.

Bloomberg

The ECB proposed the digital euro in 2020, the Commission released the package in 2023, the ECON Committee approved it in June 2026, a pilot is set for mid-2027, rollout by 2029.

European Parliament Committee Backs Digital Euro Bill

Visa and Mastercard process roughly two-thirds of euro-area card payments. Simulations show a €3 000 holding limit could trigger €699 billion withdrawals (8.2 % of retail sight deposits). Cost estimates range from €4–5.8 billion (ECB) to €18 billion (banking federation).

France 24

The digital euro aims to provide a pan-European, privacy-preserving payment alternative that reduces fees, curtails dependence on foreign card networks, and reinforces monetary sovereignty, supporting the EU’s broader strategic autonomy agenda.

Digital Euro Vote Tests Europe’s Push for Payment Sovereignty

ECB hailed the vote as a step toward reducing reliance on non-European providers. MEP Tridico called it a historic win for small businesses. Navarrete said it preserves payment choice and cash. Casonato called the draft a political compromise.

CBDC | European Parliament Backs Digital Euro to Reduce U.S Dollar Stablecoin Dominance in Payments

Banking groups warn adaptation could cost €18 billion and risk deposit outflows. Critics like Zijlstra argue the euro may become obsolete if private alternatives launch. Privacy advocates doubt the sufficiency of privacy-by-design safeguards.

EU lawmakers back digital euro mandate in ECON vote

Cost estimates diverge: ECB €4–5.8 billion versus banking federation €18 billion. The holding limit per citizen is undecided; the draft proposes a commission-set ceiling reviewed biennially, with compensation only defined as €4–6 billion.

Digital Euro Moves Forward: Europe’s Answer to Visa and Mastercard Dominance

• “We welcome that the European Parliament's ECON Committee has agreed on its position on the single currency package, which will safeguard euro cash as legal tender while also shaping the digital euro,” — European Central Bank, statement

Euronews

• “The approval of the regulation on the digital euro is a major victory for citizens and small businesses,” — Pasquale Tridico, Italian MEP (The Left)

Euronews

• “The goal is not to push anyone towards a particular form of payment, but to offer more options and preserve freedom of choice,” — Fernando Navarrete, rapporteur, European People’s Party

Bloomberg

• “The proposal reflects political compromises,” — Laura Casonato, head of policy, Positive Money Europe

Reuters

The committee’s position will go to the European Parliament in July, followed by negotiations with the Commission and Council to finalize the framework before year-end, enabling the 2027 pilot.

Euronews