The digital euro regulation faces a political deadlock in the European Parliament. A plenary override vote - bypassing the stalled ECON committee process - is scheduled for May 2026, though the outcome is uncertain.
The ECON Committee Impasse
Lead rapporteur Fernando Navarrete Rojas (EPP, Spain) has aligned with far-right groups to advocate for an offline-only digital euro model. This contradicts the European Commission's original proposal for dual online and offline functionality. The ECON committee has repeatedly blocked amendments that would require full online capability.
EPP Internal Division
The European People's Party is split on the digital euro. A non-binding straw poll in the Parliament showed 420-158 backing for the regulation. However, the lead rapporteur himself voted against the measure. Euronews reported the EPP as "completely split," with the rapporteur's offline-first position characterised as reflecting banking lobby pressure.
Plenary Override Path
Centre-left and liberal groups support the regulation but are reportedly 40 or more votes short of a majority. A parliamentary source was quoted as saying the committee text "is going nowhere," prompting the plenary override attempt.
Payment Sovereignty Framing
The geopolitical argument centres on reducing EU dependence on Visa and Mastercard, which together handle 61% of EU card transactions. Proponents frame the digital euro as a tool for European payment sovereignty - a point emphasised in Euronews reporting on the legislative process.
Timeline
The European Commission submitted the regulation nearly three years ago. If adopted in 2026, the digital euro could be issued by 2029. The ECB separately completed its preparation phase in late 2025 and approved continuation toward that launch target.