European Parliament throws support behind digital euro

The European Parliament threw its weight behind the European Central Bank’s (ECB) digital euro project in a vote that framed money and payments as a strategic asset in an era of rising geopolitical tensions. 

Lawmakers adopted the annual ECB report by 443 votes in favor, 71 against and 117 abstentions, backing amendments that describe the digital euro as “essential” to strengthening European Union monetary sovereignty, reducing fragmentation in retail payments and bolstering the integrity of the single market. 

The text places growing emphasis on how public money in digital form can curb Europe’s reliance on non‑EU payment providers and private instruments.

Members of the European Parliament (MEPs) also underlined that the ECB must remain independent and free from political pressure, arguing that safeguarding central bank autonomy was key to maintaining price stability and market confidence.

Annual review of the ECB’s policies and recommendations for 2026. Source: European Parliament

During the plenary debate, Johan Van Overtveldt, MEP and former Belgian finance minister, flagged that “the independence of the ECB is not a technical detail.”

He warned that history showed political interference with central banks “invariably leads to inflation, financial instability and even nasty political turmoil.” 

Related: EU council endorses offline and online versions of digital euro

He argued that reaffirming independence is “even more important in the current global context,” likening monetary and financial stability to utilities such as water and electricity whose importance is only truly noticed when they fail. 

Digital euro as public good and geopolitical hedge

The adopted resolution states that, even as the ECB develops a digital euro, cash should retain an important role in the euro area economy, and both physical and digital euros will be legal tender.

The parliamentary backing comes amid a broader push by central bankers and economists to frame the digital euro as a public good and a geopolitical hedge. 

Last month, ECB executive board member Piero Cipollone called the project “public money in digital form” and tied it directly to concerns about the “weaponisation of every conceivable tool.”

He argued that Europe needed a retail payment system “fully under our control” and built on European infrastructure rather than foreign schemes. 

Earlier in January, 70 economists and policy experts urged MEPs to “let the public interest prevail” on the digital euro, warning that without a strong public option, private stablecoins and foreign payment giants could gain even greater influence over Europe’s digital payments, deepening dependencies in times of stress.

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