Italy has proposed exempting digital euro payments below €10 from merchant and inter-payment-service-provider fees for three years after launch as European Union institutions negotiate rules for the planned currency. The proposal, submitted by the Ministry of Economy and Finance to the European Parliament during trilogue talks, would reduce costs for small businesses, which ECB analysis indicates can pay three to four times more in payment fees than larger companies. Negotiators are considering a merchant service charge cap of up to €0.02 for low-value payments, while retaining the possibility of a zero-fee outcome; the ECB reportedly views Italy’s approach favourably. The initial fee system would be temporary, enabling officials to gather data before setting a longer-term compensation model. The digital euro is intended to complement cash and would generally carry legal-tender status, while negotiations also cover wallet holding limits, privacy, offline payments and fee distribution. It could launch as early as 2029 if lawmakers approve the required legislation.