The European Parliament has delayed progress on the proposed digital euro after lawmakers failed to agree on key details of the plan.
The project, backed by the European Central Bank (ECB) and the European Commission, aims to introduce a digital version of cash that would work alongside physical banknotes.
However, disagreements have emerged over how the system should function. The lead lawmaker handling the file, Spanish MEP Fernando Navarrete Rojas from the European People’s Party (EPP), is pushing for an offline-only digital euro. The original proposal from Brussels would allow both online and offline payments.
This difference has created a political deadlock. Lawmakers have not been able to secure a majority position, meaning the legislation cannot move forward.
The EPP itself is divided. Germany strongly supports the digital euro, with Vice-Chancellor Lars Klingbeil recently saying that blocking the project would harm Europe’s interests.
EU member states have already agreed on their position in the Council. But without Parliament’s approval, the proposal cannot enter the next stage of negotiations.
The debate has also raised wider concerns about Europe’s dependence on US payment companies. Visa and Mastercard account for more than 60% of card payments in the EU and dominate cross-border transactions.
Supporters say a digital euro would strengthen Europe’s financial independence and give citizens direct access to central bank money in digital form. Critics argue the current compromise text weakens the original plan.
Another meeting is scheduled in March, but a vote expected in May may now be postponed.
