European Parliament committee backs digital euro regulation

The European Parliament’s Economic and Monetary Affairs Committee approved the digital euro regulation on June 23, a key legislative step that sends the file to a full Parliament vote expected in July.

The committee backed the draft 43 votes to 14, with one abstention. While the result strengthens the file’s prospects, it does not yet mean the digital euro can be issued. The proposal still has to move through the rest of the EU legislative process.

Aurore Lalucq, who chairs the committee, described the vote as a historic day for Europe. The European Central Bank also welcomed the committee’s position on the single-currency package.

What the committee vote changes

The approval gives lawmakers a clearer negotiating position on the text and clears an important procedural hurdle. The next major checkpoint is a plenary vote in the European Parliament, which is expected in July 2026.

If Parliament endorses the regulation, the draft would still need the remaining legislative steps before any launch timeline could be confirmed. The file is therefore advancing, but it remains subject to political and institutional negotiation.

The digital euro is being designed as a public digital payment option for the euro area. Coverage of the proposal says it would be intended for both online and offline use.

Why the project matters

Supporters argue that a digital euro could preserve cash as a public payment choice even as payments become more digital. They also say it could improve resilience by giving consumers and businesses another way to pay if private systems are disrupted.

The project is also tied to Europe’s push for payment sovereignty. Coverage around the vote framed the initiative as an effort to reduce dependence on non-European payment networks, including systems linked to Visa and Mastercard.

That geopolitical argument has become central to the debate. For backers, the digital euro is not only a technical payments project but also a way to ensure the euro area retains more control over core financial infrastructure.

Policy stakes and open questions

The project remains politically sensitive because of concerns about privacy, bank disintermediation and possible deposit outflows. Those issues have shaped the wider debate around central-bank digital money in Europe and are unlikely to disappear before the plenary stage.

Coverage also indicates that lawmakers are still negotiating the final shape of the regulation. Open questions include whether any amendments were adopted with the committee vote, how the plenary position will compare with the committee text and how quickly the remaining steps can be completed.

For consumers, the practical significance would depend on how the final rules are written. The current framework points to a digital public payment instrument that would work online and offline, but no issuance can happen until the legislation is finished and the EU institutions complete the process.

For now, the committee vote is the clearest institutional advance yet for the digital euro this year. It moves a long-running EU project one step closer to a formal Parliament decision while leaving the biggest political and technical questions unresolved.