Digital euro legislation stalls

The European Parliament is facing renewed delays on the digital euro file after lead rapporteur Fernando Navarrete Rojas of the European People’s Party aligned with far-right groups, leaving no stable majority behind the draft text. This has blocked negotiations with shadow rapporteurs and created a legislative deadlock, despite earlier signals that Parliament broadly supports the project.

The latest compromise text would significantly narrow the scope of the digital euro. While the European Commission proposed a digital form of cash usable both online and offline, the rapporteur is now pushing for an offline-only model. Several political groups view this as incompatible with the original policy objective and have rejected the amendments as unworkable.

Internal divisions within the EPP are adding to the uncertainty. The German delegation has strongly backed the digital euro, reflecting pressure from Berlin, where senior officials have warned that opposing the project could undermine Europe’s strategic interests. A further attempt to bridge differences failed last week, with lawmakers openly stating that the file is “going nowhere,” and a vote currently planned for May is expected to be postponed.

The stalemate matters beyond institutional process. The digital euro has gained political urgency as the EU seeks to reduce its dependence on US-based payment networks such as Visa and Mastercard, which together account for about 61% of card payments in the Union. Without a parliamentary mandate, negotiations cannot advance, putting at risk the Commission’s vision of a secure, privacy-preserving form of digital public money alongside cash.