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The digital euro is facing fresh delays in the European Parliament after the file’s lead rapporteur, Spanish lawmaker Fernando Navarrete Rojas of the European People’s Party (EPP), formed a minority bloc with far-right groups — leaving shadow rapporteurs unable to secure a workable majority around the draft.

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The latest compromise text seen by Euronews would also narrow the project’s scope in a way that goes to the heart of the Commission’s plan.

Brussels proposed a digital form of cash that could be used both online and offline. Navarrete, by contrast, is pushing for an offline-only model.

As rapporteur, Navarrete is responsible for steering the legislative text and building agreement across political groups through negotiations with shadow rapporteurs — a process designed to produce a majority-backed position in Parliament.

The Parliament has already signalled broad support for a digital euro.

On 10 February, lawmakers adopted the European Central Bank’s annual report and backed two pro–digital euro amendments, with opposition mainly coming from some centrist and far-right MEPs.

The EPP itself is split on the file. The German delegation is strongly in favour, amid pressure from Berlin. In mid-February, Vice-Chancellor Lars Klingbeil told journalists that those opposing the digital euro were harming Europe.

Two sources familiar with the talks told Euronews that amendments tabled by Navarrete in the latest compromise text are a non-starter for groups backing the Commission’s plan, pushing the file into a legislative deadlock.

Euronews contacted lead rapporteur Navarrete for comment but had not received a response at the time of publication.

The impasse surfaced again at a meeting on Thursday, when lawmakers attempted to bridge differences after a heated discussion, claiming “the text is going nowhere”.

Another meeting is scheduled for 10 March, but sources expect a vote currently pencilled in for May to slip.

EU countries have already agreed their position in the Council. Without a Parliament mandate, the legislation cannot move to the next stage.

What is digital euro?

The digital euro has taken on new political weight as economic tensions between the EU and the US sharpen the debate over Europe’s reliance on American payment giants.

Visa and Mastercard, both US-based, underpin much of day-to-day card spending in Europe. ECB data for 2025 shows the two networks account for 61% of card payments in the EU and nearly all cross-border card payments.

The project would create an electronic form of cash issued by the European Central Bank, designed to sit alongside banknotes and the payments services offered by commercial banks.

Supporters argue it would give citizens direct access to digital “public” money — something that, for now, largely exists only in the form of cash.

Under the Commission’s proposal, users would have a digital wallet for both online and offline payments, with transactions designed so they are not trackable.

Critics say the latest compromise text in Parliament risks stripping out key parts of that vision.

“This first taste of a compromise from Mr. Navarrete sadly shines little light on any actual shift in his direction for the digital euro,” Laura Casonato, head of policy at Positive Money Europe, told Euronews.

Casonato said the draft does contain some welcome elements, including language recognising that the digital euro “should be a sovereign and secure digital means of payment that safeguard public access to central bank money” alongside clearer provisions on privacy and data security.

Published on 16/02/2026 – 18:22 GMT+1•Updated
18:32

Failing to recognise that it is now essential to advance the digital euro is harming Europe, German Vice-Chancellor and Finance Minister Lars Klingbeil told journalists on Monday, ahead of a meeting of euro area ministers in Brussels.

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The digital euro, a legislative proposal currently being discussed among the European Union’s institutions, is currently blocked in the European Parliament, where MEPs working on the file are struggling to come to an agreement.

“All I can say is that anyone who, in this situation, has not understood that it is now essential to advance the digital euro as quickly as possible is not serving Europe, but harming it. And everyone responsible for making decisions must be aware of that,” Klingbeil told journalists.

Spanish centre-right MEP Fernando Navarrete of the the European People’s Party (EPP), who is leading the work on the file, is now proposing a new design for the digital euro, which would essentially reduce the scope of the tool as outlined by the European Commission.

The EPP is divided over the digital euro, with the German delegation actively in favour. If the Parliament cannot agree a position on the file, the legislation will not be able to move forward.

What is the digital Euro?

The digital euro would be an electronic form of cash issued by the ECB, and would serve as an additional form of payment supplementing the cash and cards issued by commercial banks.

“We want to move the digital euro forward because it is important for the sovereignty of our continent, but cash will, of course, remain”, the vice-chancellor clarified.

Unlike everyday card payments, where payments are “private”, the digital euro would allow citizens a direct use of digital “public” money, now mainly available in the form of cash.

Under the European Commission’s proposal, the digital euro would include a digital wallet that could be used both online and offline, with payments not trackable.

An alternative to Visa and Mastercard

The digital euro proposal has surged in importance thanks to economic tensions between the EU and the US, offering as it does an alternative to Visa and Mastercard, the two US-based payment systems used in everyday life by most Europeans.

“Today, when a European customer makes a card payment, it is most often executed by a US firm”, Peter Norwood, senior research and advocacy from the NGO Finance Watch told Euronews.

In Europe, Mastercard and Visa account for 61% of card payments and nearly 100% of cross-border ones, according to data from the European Central Bank data from 2025.

“That gives foreign actors meaningful leverage over the day-to-day functioning of the European economy. A properly designed digital euro, with both online and offline functionality, would give Europeans a publicly backed digital payment option. One that keeps costs down, protects privacy and ensures European control over critical payments infrastructure”, Norwood added.

However, in Navarrete’s proposal, the digital euro would not be an alternative means of payment to Visa and Mastercard.

The European Parliament is expected to vote on the digital euro in May. If the legislation passes, there will begin negotiations between the European Commission, European Parliament and the Council of the EU.