EU Parliament negotiators on March 27 overcame a central political hurdle in the digital euro legislation by endorsing both online and offline payment modes. The regulation will now treat the digital euro as a single payment system available in both formats. The resolution overrides the position of ECON rapporteur Fernando Navarrete, who had proposed an initial rollout limited to offline person-to-person payments.
The European Parliament plenary vote is expected on May 5. One EU official monitoring the debate said the outcome could go down to the wire. Centre-left groups and liberals back the proposal but are more than 40 votes short of an absolute majority among the 720 MEPs. EPP MEP Markus Ferber has questioned whether genuine demand exists for ECB-backed online payments.
The European Council on March 19 set a target to approve the digital euro legislation by end of 2026. Parliament expressed non-binding support on February 10 with a 438-to-158 vote in favour. If the regulation is adopted during 2026, the ECB plans to begin a pilot exercise in 2027 with potential issuance in 2029. Hold limits and the compensation model for banks remain unresolved.