Euro Digital: EU Parliament Backs Key Amendments for Digital Sovereignty

The European Parliament has overwhelmingly backed the creation of a digital euro, a move intended to bolster the European Union’s financial sovereignty and reduce reliance on US-dominated payment systems. The vote, held on Tuesday February 10, 2026, signals renewed momentum behind the project, which has been under discussion for approximately six years and formally proposed by the European Central Bank (ECB) in June 2023.

Two key amendments, championed by Italian MEP Pasquale Tridico, secured broad support from lawmakers. One amendment explicitly recognizes the digital euro as “essential” for strengthening European monetary sovereignty, particularly in light of geopolitical uncertainties and dependence on third-country infrastructure. The second amendment focuses on ensuring equal access to payment services, guarding against potential exclusion of citizens and businesses if digitalization is left solely to private sector actors.

The push for a digital euro comes as Europe seeks to lessen its dependence on US payment giants like Visa and Mastercard, which currently handle the majority of card transactions within the Eurozone. According to Tridico, “Among the first ten payment systems most used in Europe, none are European.” Visa and Mastercard control nearly two-thirds of card transactions in the Eurozone, and 13 member states lack a viable national alternative. This reliance is viewed not only as a source of instability but also as a hidden cost to consumers.

The proposed digital euro would function as a digital form of cash, directly guaranteed by the ECB, and would be available for use free of charge in shops, online, and for peer-to-peer transactions. Supporters believe it will safeguard universal access to payments while upholding privacy and data protection standards.

ECB President Christine Lagarde has sought to address privacy concerns, assuring lawmakers that the bank “would not have access to personal data.” However, critics remain wary, fearing potential government surveillance of citizens’ payments or the possibility of being cut off from the financial system.

The European Parliament’s approval follows a green light from EU countries in December, putting pressure on lawmakers to finalize the regulatory framework. There is growing optimism that the Parliament could take a decisive step this year, although any law requires the support of both member states and lawmakers.

The move aligns with a broader European strategy of “digital sovereignty,” a push to reduce dependence on both Silicon Valley and China. A recent report from the Atlantic Council highlighted how the Trump administration’s policies have accelerated the EU’s quest for independence in the tech sector. This ambition extends beyond payments, encompassing data regulation, content moderation, and cybersecurity.

The initiative isn’t without opposition. Within the Italian delegation to the European Parliament, Roberto Vannacci and the Lega party were the only Italians to vote against the project, while the rest of the governing coalition – Fratelli d’Italia and Forza Italia – and the opposition parties (M5S, PD, and Avs) all supported it.

The decision comes after a period of debate and lobbying. January 11, 2026, a group of 68 experts and academics, including economist Thomas Piketty, urged MEPs to resist pressure from the financial lobby. Large banks, including Deutsche Bank, BNP Paribas, and ING, have expressed concerns about the potential impact on their deposit base and profit margins.

The European payments initiative (EPI), and its Wero platform – a continental alternative to Apple Pay with 48.5 million users across Belgium, France, and Germany – also voiced its support. The EPI views the digital euro as a crucial safety net against the dominance of US-based systems.

Piero Cipollone, a member of the ECB’s board and responsible for the digital euro project, emphasized the need to avoid dependence on systems outside European control. However, concerns remain about the timeline, with some arguing that waiting until 2029 for the first issuance may be too long for Europe to remain competitive.

The digital euro represents a significant step towards strengthening the EU’s financial independence and reducing its reliance on foreign payment providers. While challenges remain, the European Parliament’s endorsement signals a clear commitment to realizing this ambitious project.