The European Parliament has formally endorsed the European Central Bank’s digital euro initiative, signaling broad political support for a project increasingly tied to Europe’s economic autonomy.
In a vote on the ECB’s annual report, lawmakers positioned digital public money as a strategic tool at a time when financial systems are being viewed through the lens of geopolitical risk and technological competition.
Strong Majority in Favor
Members of the European Parliament approved the report by 443 votes to 71, with 117 abstentions, backing amendments that describe the digital euro as vital to reinforcing the European Union’s monetary sovereignty.
The adopted text argues that a central bank digital currency could help reduce fragmentation in retail payments across member states and strengthen the integrity of the EU’s single market.
Lawmakers also stressed that reliance on non-EU payment providers and private digital instruments creates structural dependencies. A digital euro, in their view, would provide a publicly issued alternative embedded within European infrastructure.
The vote does not authorize immediate issuance but reinforces political momentum behind the European Central Bank’s ongoing design and testing phase.
Independence of the ECB Reaffirmed
During plenary debate, Belgian MEP and former finance minister Johan Van Overtveldt warned that central bank independence must not be compromised as the project advances.
“The independence of the ECB is not a technical detail,” he said, cautioning that political interference in monetary policy has historically led to inflation, instability, and broader economic disruption.
Lawmakers echoed that sentiment in the adopted resolution, arguing that safeguarding institutional autonomy remains essential for maintaining price stability and preserving market confidence. The message was clear: support for the digital euro does not imply political direction over the ECB’s mandate.
Digital Euro as Public Good
The resolution emphasizes that physical cash will continue to play a central role in the euro area economy. Both cash and a potential digital euro would carry legal tender status, according to the Parliament’s position.
Supporters increasingly frame the digital euro not only as a modernization effort but as a public good. The concept centers on offering citizens and businesses access to “public money in digital form” alongside existing payment options.
Last month, ECB Executive Board member Piero Cipollone linked the project to broader geopolitical concerns, arguing that Europe must retain control over its payment systems in an era where financial tools can be weaponized.
He said the EU needs retail payment infrastructure built and governed within Europe rather than relying heavily on foreign-operated schemes.
Growing Debate Over Private Alternatives
The parliamentary backing follows an appeal in January from 70 economists and policy experts urging lawmakers to prioritize the public interest in shaping the digital euro framework.
They warned that without a credible public option, private stablecoins and large foreign payment companies could deepen Europe’s external dependencies, particularly during periods of financial stress.
The debate reflects a broader global shift. Central banks worldwide are assessing digital currencies as cross-border payment systems evolve and private digital assets gain scale.
Key Numbers
The European Parliament vote: 443 in favor, 71 against, 117 abstentions.
The ECB remains in the preparatory phase of the digital euro project, with final issuance decisions still pending.
What Happens Next
The ECB continues technical development and consultation on design features, including privacy safeguards, limits on holdings, and the role of banks and intermediaries.
Any eventual rollout would require additional legislative approval at the EU level. The Parliament’s vote strengthens political backing but does not finalize the legal framework.
For now, the digital euro remains a work in progress. But the latest vote shows that, in Brussels, it is increasingly viewed not simply as a payment innovation but as a pillar of Europe’s economic resilience.
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