European Parliament approves negotiations for a digital euro

On July 9, 2026, the European Parliament voted 416 to 169, with 22 abstentions, to move forward with legislative negotiations regarding the creation of a digital euro. The decision authorizes inter-institutional talks with the Council to establish a digital currency that functions as legal tender for retail payments. Proponents, including European Central Bank President Christine Lagarde, argue this will modernize the eurozone and reduce reliance on non-EU payment providers. Parliament's position includes provisions for data privacy, ensuring transactions are verified without disclosing unnecessary personal details. The framework mandates that most businesses accept the currency, though exceptions exist for small and micro-enterprises. Additionally, basic services such as account opening and fund management will be provided free of charge, with a proposed cap on holdings per individual to protect the financial system. Political groups including PfE, ECR, and ESN had previously challenged the committee decisions leading to this stage. Fernando Navarrete Rojas has been appointed to lead the Parliament’s negotiating team.