The European Parliament has expressed strong support for the European Central Bank’s digital euro initiative, presenting money and payment systems as strategic tools in a period marked by increasing geopolitical pressure.

Lawmakers approved the ECB’s annual report with 443 votes in favor, 71 opposed and 117 abstentions, endorsing language that describes the digital euro as “essential” for reinforcing European monetary sovereignty, reducing fragmentation in retail payments and strengthening the single market. The resolution places growing importance on the role of public digital money in lowering dependence on non-EU payment providers and private payment instruments.

Members of the European Parliament also emphasized that the ECB must remain independent and protected from political influence, stating that central bank autonomy is fundamental for preserving price stability and sustaining market confidence. During the plenary session, Johan Van Overtveldt, MEP and former Belgian finance minister, stressed that “the independence of the ECB is not a technical detail.”

He cautioned that historical experience shows political interference with central banks “invariably leads to inflation, financial instability and even nasty political turmoil.” He further argued that reaffirming independence is “even more important in the current global context,” comparing monetary and financial stability to essential utilities such as water and electricity, whose value becomes most visible when disrupted.

Digital euro positioned as public good and geopolitical safeguard

The adopted resolution states that while the ECB advances work on a digital euro, physical cash will continue to play a meaningful role in the euro area, with both cash and the digital euro recognized as legal tender. Parliamentary backing comes amid broader efforts by policymakers and economists to frame the digital euro as both a public good and a geopolitical safeguard.

ECB executive board member Piero Cipollone recently described the project as “public money in digital form” and linked it to concerns about the “weaponisation of every conceivable tool.” He argued that Europe requires a retail payment system “fully under our control” and built on domestic infrastructure rather than foreign networks.

Earlier in the year, 70 economists and policy specialists urged lawmakers to “let the public interest prevail” regarding the digital euro, warning that without a strong public alternative, private stablecoins and foreign payment providers could expand their influence over Europe’s digital payments landscape, increasing systemic dependence during periods of stress.

The digital euro remains subject to approval by EU co-legislators, with the ECB currently focused on technical readiness. If legislation progresses during 2026, a pilot phase could begin in 2027, and the Eurosystem could be prepared for an initial issuance around 2029.

Sources:

https://www.europarl.europa.eu/plenary/en/vod.html?mode=chapter&vodLanguage=EN&internalEPId=2017060832131&providerMeetingId=20260209-0900-PLENARY#

https://www.europarl.europa.eu/news/da/press-room/20260205IPR33621/meps-stress-importance-of-independent-central-banks-in-times-of-tension

https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.pr251030~8c5b5beef0.en.html

https://cointelegraph.com/news/european-parliament-backs-ecb-digital-euro