The digital euro project was the subject of a lively debate among the MEPs gathered in plenary on Wednesday, 19 April, along with European Commissioner for Financial Services Mairead McGuinness and Swedish Minister for European Union Affairs Jessika Roswall, representing the Presidency of the Council of the European Union.
Those involved in the debate agreed on the highly political nature of such a project.
However, the question of the added value of a digital euro divided MEPs.
For Markus Ferber (EPP, German), as long as this point goes unaddressed, there will be a lot of scepticism.
In response to these remarks, Jonas Fernandez (S&D, Spanish) argued that a digital euro was needed to safeguard European monetary sovereignty. However, Jonas Fernandez is concerned that the envisaged proposal is not very ambitious and barely makes a distinction between the digital euro and other means of payment.
Ernest Urtasun (Greens/EFA, Spanish) replied that the added value of a digital euro will depend on its design. He expressed concern about pressure from certain groups established to ensure that the digital euro does not undermine traditional commercial banks’ business models. Likewise, Chris MacManus (The Left, Irish) called on the European Commission and the European Central Bank (ECB) to protect the idea of money as a public good.
In contrast, Johan Van Overtveldt (ECR, Belgian) declared that a digital euro was not the answer to a specific need. In the MEP’s opinion, confidence in the monetary system will be achieved through fiscal and monetary discipline, lowering debt, and curbing inflation.
MEPs then discussed other challenges related to a digital euro, including the balance to be found between privacy and the need to combat money laundering and the financing of terrorism.
Likewise, Ms Roswall mentioned other challenges related to the project, including the need for interoperability between the digital euro and other similar instruments.
Commissioner McGuiness sought to be reassuring as she presented various aspects of the European Commission’s proposal, expected on 25 May. The commissioner stated that the digital euro project must be supported by a strong democratic process, which is also essential to gaining the trust of citizens.
Responding to concerns expressed by The Left and Gunnar Beck (ID, German), Mrs McGuiness stressed that the European Commission’s proposal would be “not a project of control but a project of choice”. It would not aim to replace notes and coins but to provide an additional payment option. Incidentally, the European Commission’s proposal will be accompanied by a proposal on the scope of and effects on the legal tender status of euro banknotes and coins.
Mrs McGuiness believes that a digital euro would support European strategic autonomy and would help ensure access to central bank currencies in a rapidly digitalising world and in an environment marked by competition from private offerings, such as cryptocurrencies.
Furthermore, the commissioner emphasised the project’s opportunities for inclusiveness with regard to vulnerable groups, especially people who do not have bank accounts or who have difficulty using digital tools. The European Commission will also examine a series of basic services to be provided to consumers “free of charge or at a reasonable price”.
Mairead McGuinness also sought to offer reassurance as to the potential risk to financial stability by assuring MEPs that the digital euro project would be offered as a payment option and not as a means of having a large store of assets.
The commissioner wants payment service providers, responsible for distributing the digital euro, to receive fair compensation. For that matter, the commissioner believes that the digital euro will support innovation in the sector of payment systems.
Finally, Mrs McGuinness specified that the decision whether or not to make the digital euro project a reality falls to the European Central Bank and that the European Commission would not preempt this prerogative. (Original version in French by Émilie Vanderhulst)