Right-Wing Bloc in European Parliament Seeks to Stall ECB’s Digital Euro Plan

Brussels: A coalition of right-wing and some centrist Members of the European Parliament (MEPs) is attempting to block progress on the proposed digital euro, creating uncertainty around one of the European Central Bank’s flagship monetary initiatives.

The opposition is being led by Spanish MEP Fernando Navarrete Rojas of the European People’s Party (EPP), who has formed a minority bloc alongside far-right groups in the European Parliament. Strong resistance to the project was voiced during a meeting this week, with further discussions scheduled for March 10. A parliamentary vote is expected in May.

At present, there is no clear majority in Parliament to advance the legislation. While the Council—representing EU member states—has approved the proposal, parliamentary backing is required before the measure can proceed to the next legislative stage.

Although Germany’s delegation is reportedly supportive of the initiative, concerns persist that compromise amendments could dilute the original scope of the European Commission’s proposal. Critics warn that changes put forward by Navarrete and his allies could significantly slow the legislative process.

Debate Over Design and Scope

Brussels has proposed a digital form of central bank money that could be used for both online and offline transactions. However, the bloc led by Navarrete is pushing for a more limited offline-focused model. There are also fears among supporters that the compromise amendments could stall implementation altogether.

Despite the current impasse, Parliament signalled general support for the digital euro earlier this month when lawmakers approved the ECB’s annual report on February 10, including two amendments backing the initiative.

German Vice Chancellor Lars Klingbeil has publicly defended the project, stating that opposition to the digital euro risks undermining Europe’s strategic interests.

Strategic Importance Amid Global Tensions

The digital euro has gained political momentum amid rising economic tensions between the European Union and the United States. Policymakers argue that Europe’s heavy reliance on American payment providers strengthens the case for a sovereign digital currency.

US-based companies Visa and Mastercard dominate the European card payments market. According to ECB data from 2025, the two firms account for 61% of all cross-border card payments within the EU.

The proposed digital euro would function as electronic central bank money accessible through a digital wallet, allowing both online and offline payments. The Commission has also stated that the system would be designed to ensure a high level of privacy, with safeguards to prevent the tracking of individual transactions.

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