EU lawmakers clear digital euro for trilogue after 43-14 committee vote

The European Parliament has approved legislation for a digital euro and moved it toward negotiations with member states, advancing the European Central Bank-backed plan for a public digital payment option in the euro area. The project is designed to complement cash rather than replace it. Parliament’s position includes free basic services such as accounts and payments, privacy safeguards for transactions, and limits on how much individuals can hold in digital euros in the initial phase to reduce the risk of commercial bank deposit outflows. The ECB has presented the digital euro as part of a broader effort to reduce Europe’s reliance on foreign payment providers and respond to the growing role of private digital money, including stablecoins. The proposal remains politically sensitive because it aims to balance convenience and sovereignty goals with concerns over privacy, cash access and financial stability.