On Friday 2 February, the European Parliamentary Research Service published an opinion by political scientist Josefina Capdevila Penalva examining the European Commission’s impact assessment (IA) accompanying the proposal to establish a legal framework for the digital euro (see EUROPE 13211/11).
In particular, the document reviews the competences and legal bases, the proportionality tests and the options envisaged in the impact study.
The author also explains how the impact study assesses the need for a digital euro in the light of three trends: the declining use of cash in retail payments, the risk to the monetary anchoring of the euro in the absence of an accessible digital central currency, and finally the risk to the role of the euro and the monetary sovereignty of the Eurosystem of increased recourse by users to private solutions, such as the use of non-euro-denominated global ‘stablecoins’.
In her opinion, she considers that, while the impact assessment does examine the consequences for various stakeholders of the existence of a digital euro, more detailed information could be provided on the consequences of introducing a digital euro.
Furthermore, according to Ms Capdevila Penalva, the impact assessment does not present operational objectives or a timetable for achieving the objectives pursued by the proposal and, as a result, “the Better Regulation Guidelines’ SMART criteria (according to which, objectives should be specific, measurable, achievable, relevant and time-bound) do not seem to have been fully applied”.
Overall, she believes that the impact assessment has adequately addressed the issues raised by the Regulatory Oversight Board, following a negative opinion on an initial assessment in November 2022, but that the impact assessment could be more specific regarding cyber-risks, the balance between privacy and security, and the fight against money laundering and terrorist financing.
Finally, the opinion is fairly positive about the coherence of the two proposals in the single currency package (which also includes a proposal to make euro notes and coins legal tender - see EUROPE 13211/12) and the impact assessment.
To find out more, visit https://aeur.eu/f/apz (Original version in French by Émilie Vanderhulst)