What changed between the draft committee report and the plenary report

Removed:Recital 5: (5) The provision of digital euro payment services by payment services providers incorporated in Member States whose currency is not the euro, should be subject to the same supervisory standards as those applied to payment services providers incorporated in Member States whose currency is the euro. For that purpose, the relevant provisions of Directive (EU) 2015/2366 of the European Parliament and the Council5, Directive (EU) 2015/849 of the European parliament and of the Council6 should apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning provision of digital euro payment service by payment services providers established in Member States whose currency is not the euro. / 5 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj). / 6 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC…

Added:---------------------------------------------------------

Removed:Recital 6: (6) Similarly, as in case of competent authorities of Member States whose currency is the euro under Regulation (EU) .../...+, the competent authorities responsible under Directive (EU) 2015/2366 for supervising the provision of payment services should also cooperate with the European Central Bank for the purposes of supervising the application of payment-related obligations laid down in Regulation (EU) .../...++ / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)). / ++ OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:2023/0211 (COD)

Removed:Recital 7: (7) In accordance with Article (4), point (25), of Directive 2015/2366, funds mean banknotes and coins, scriptural money or electronic money. As a new form of central bank money with legal tender, the digital euro should be considered as funds under Directive 2015/2366 as replaced by Directive (EU) [please insert reference – proposal for a Directive on payment services and electronic money services in the internal market - COM/2023/366 final] which extends the definition of funds to all forms of central bank money issued for retail use. The same definition of funds should be included in Regulation (EU) 2021/1230 of the European Parliament and of the Council1a. / 1a Regulation (EU) 2021/1230 of the European Parliament and of the Council of 14 July 2021 on cross-border payments in the Union (OJ L 274, 30.7.2021, p. 20, ELI: http://data.europa.eu/eli/reg/2021/1230/oj).

Added:Proposal for a

Removed:Recital 9: (9) The European Data Protection Supervisor and the European Data Protection Board were consulted in accordance with Article 42 of Regulation (EU) 2018/1725 and delivered a joint opinion on 17 October of 2023,

Added:REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Removed:Article 1 – paragraph 1 – point c: (c) the specific obligations that original equipment manufacturers of mobile devices and providers of electronic communication services within the meaning of Article 2(1) Directive (EU) 2018/1972 of the European Parliament and of the Council1a established in Member States whose currency is not the euro shall apply in relation to the digital euro. / 1a Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing the European Electronic Communications Code (OJ L 321, 17.12.2018, p. 36, ELI: http://data.europa.eu/eli/dir/2018/1972/oj).

Added:on the provision of digital euro services by payment services providers incorporated in Member States whose currency is not the euro and amending Regulation (EU) 2021/1230 of the European Parliament and the Council

Removed:Article 2 – paragraph 1 – point 1: 1. ‘digital euro’ means the digital euro as defined in Article 2, point 1 of Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Removed:Article 2 – paragraph 1 – point 3: 3. ‘digital euro payment service’ means digital euro payment service as defined in Article 2, point 8 Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Removed:Article 2 – paragraph 1 – point 5: 5. ‘visitor’ means a natural person as defined in Article 2, point 22, of Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,

Removed:Article 2 – paragraph 1 – point 6: 6. ‘Member State whose currency is not the euro’ means a Member State whose currency is not the euro as defined in Article 2, point 23, of Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:Having regard to the proposal from the European Commission,

Removed:Article 2 – paragraph 1 – point 7: 7. ‘mobile device’ means a mobile device as defined in Article 2, point 31, of Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:After transmission of the draft legislative act to the national parliaments,

Removed:Article 3 – paragraph 1 – introductory part: Within the framework of Directive (EU) 2015/2366, payment services providers incorporated in the Member States whose currency is not the euro may provide digital euro payment services set out in Annex I to Regulation (EU) .../... + for offline digital euro and Annex II to that Regulation for online digital euro to: / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:Having regard to the opinion of the European Central Bank,

Removed:Article 3 – paragraph 1 – point d: (d) natural and legal persons residing or established in Member States whose currency is not the euro, subject to the conditions laid down in Article 18 of the Regulation (EU).../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:Having regard to the opinion of the European Economic and Social Committee,

Removed:Article 3 – paragraph 1 – point e: (e) natural and legal persons residing or established in third countries, including territories under a monetary agreement with the European Union, subject to the conditions laid down in Articles 19 and 20 of the Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:Acting in accordance with the ordinary legislative procedure,

Removed:Article 3 – paragraph 1 – subparagraph 1 a (new): The European Central Bank may restrict the access to and use of the online digital euro for the digital euro users referred to in the first subparagraph, points (b) and (c) of this Article subject to the conditions laid down in Article 16 of the Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:Whereas:

Removed:Article 3 – paragraph 1 – subparagraph 1 b (new): The access to and use of the automatic funding and defunding of the online digital euro shall be restricted for digital euro users referred to in the first subparagraph, point (c).

Added:(1) The Commission emphasised in the Digital Finance and Retail Payment Strategies of September 2020 that a digital euro, as a retail central bank digital currency, would act as a catalyst for innovation in payments, finance and commerce in the context of ongoing efforts to reduce the fragmentation of the EU retail payments market.

Removed:Article 4 – paragraph 1 – subparagraph 1: The requirements laid down in Article 13, Article 14(1), Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU).../...+, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../.... (2023/0212(COD)).

Added:(2) Regulation (EU) …/…* on the establishment of the digital euro establishes the digital euro and lays down rules concerning it, in particular as regards its issuance, legal tender status, distribution, use and essential features, with a view to adapting the euro to technological changes and to ensuring its use as a single currency.

Removed:Article 4 – paragraph 1 – subparagraph 2: The requirement laid down in Article 33 of Regulation (EU) .../...+ shall be applicable to original equipment manufacturers of mobile devices and providers of electronic communication services within the meaning of Article 2(1) Directive (EU) 2018/1972 established in Member States whose currency is not the euro. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:(3) It is essential to ensure that, while payment service providers incorporated in Member States whose currency is the euro are mandated to distribute the digital euro, payment service providers incorporated in Member States whose currency is not the euro may also distribute the digital euro and therefore exercise their freedom to provide services in the Union. The provision of digital euro payment service by all payment service providers would contribute to a high level of innovation, facilitate payments and increase competition across the Union and is necessary to safeguard the integrity of the single market.

Removed:Article 4 – paragraph 3: 3. In accordance with Article 2(10) of Regulation (EU) 2021/1230, the provisions of that Regulation shall apply to payment transactions in digital euro.

Added:(3a) All payment service providers incorporated in the Union should therefore be in a position to distribute digital euro payment services under the same conditions to natural or legal persons residing or established in the Member States whose currency is the euro, to natural or legal persons who opened a digital euro payment account at the time they resided or were established in the Member States whose currency is the euro, but no longer reside nor are established in such Member States, and to visitors in the euro area. Payment service providers incorporated in Member States whose currency is not the euro should also be in a position to distribute the digital euro to any other natural or legal persons residing or established in Member States whose currency is not the euro and in other countries of the European Economic Area or any third countries subject to the conditions laid down in the Regulation (EU) …/…*, including where those natural or legal persons decide to exercise their right of free movement in a Member State whose currency is the euro. Additionally, payment service providers incorporated in Member States whose currency is not the euro should also be in a position to distribute the digital euro to citizens of a third country that benefit from a specific arrangement creating free movement rights in part of the Union.

Removed:Article 4 – paragraph 4: 4. Without prejudice to Articles 37 of Regulation .../...+, Directive (EU) 2015/849 and Regulation (EU) 2023/1113 of the European Parliament and of the Council2a shall apply with respect to the digital euro. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)). / 2a Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (OJ L 150, 9.6.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/1113/oj).

Added:(3b) The European Central Bank should be able to define and impose restrictions on the access and use of the digital euro by visitors to the euro area and by natural or legal persons formerly resident or established in a Member State whose currency is the euro.

Removed:Article 5 – paragraph 1: 1. Directive (EU) 2015/2366 of the European Parliament and of the Council shall apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning the activities of payment service providers established in Member States whose currency is not the euro in relation to the digital euro for the purposes of applying this Regulation and the obligations referred to in Chapters IV, V, VI and VII of Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:(3c) For the benefit of the single market and to offer a more complete user experience for the digital euro, payment service providers incorporated in Member States whose currency is the euro should be able to provide digital euro payment services to merchants residing or established in a Member State whose currency is not the euro, or in a third country, thereby allowing those merchants to receive digital euro payment transactions from persons who might be provided with digital euro payment services by payment service providers incorporated in Member States whose currency is not the euro. That possibility is independent from the specific conditions for the distribution of the digital euro outside the euro area set out in Regulation …/…** and is subject to the applicable national law of the Member State or third country where the merchant allowed to receive digital euro payment transactions is established.

Removed:Article 5 – paragraph 2: 2. Directive (EU) 2015/849 shall apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States concerning the activities of payment service providers incorporated in Member States whose currency is not the euro established in relation to the digital euro for the purpose of applying this Regulation and the obligations contained in Chapter IX of Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:(3d) Where a credit institution incorporated outside the euro area already has natural persons as clients who are resident in a Member State whose currency is the euro, that credit institution should be able to provide them with basic digital euro payment services. The requirements that should cumulatively be met for that purpose are (i) the credit institution should already provide digital euro payment services related, at least, to the access and use of the digital euro, the initiation and reception of digital euro payment transactions and the management of digital euro payment accounts; (ii) the credit institution should provide those digital euro payment services for three consecutive years to at least 400 000 natural persons residing in the euro area or to at least 5 % of the resident population in a single Member State whose currency is the euro; and (iii) the clients to which the basic digital euro payment services are provided should not have another payment account that provides mandatory digital euro payment services. As an alternative to providing basic digital euro payment services, the credit institution should be able to offer its clients the possibility to request those services from one of its branches or subsidiaries located in a Member State whose currency is the euro.

Removed:Article 6 – paragraph 1: For the purposes of supervising the application of Chapters IV, V and VII of the Regulation (EU) .../...+ the competent authorities referred to in Article 4(1) shall, where relevant, cooperate with the European Central Bank. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

Added:(3e) Notwithstanding the obligation in principle to join the euro area once the convergence criteria established in Article 140 of the Treaty on the Functioning of the European Union are met, Member States whose currency is not the euro should monitor the effects of the use of the digital euro alongside their national currency and, if appropriate and necessary having regard to their corresponding report, take limited measures.

Removed:Regulation (EU) 2021/1230

Added:(4) Payment service providers incorporated in Member States whose currency is not the euro should apply the same rules as payment service providers incorporated in Member States whose currency is the euro for the purposes of distributing the digital euro, including the rules on the mandatory acceptance of the digital euro. That is essential in order to ensure that the distribution of the digital euro by all payment service providers incorporated in the Union takes place in a uniform manner.

Removed:Article 7 – paragraph 1, Article 2 – point 10: In Article 2 of Regulation (EU) 2021/1230 of the European Parliament and of the Council, point 10 is replaced by the following: “‘funds’ means central bank money issued for retail use, scriptural money or electronic money.

Added:(5) The provision of digital euro payment service by payment services providers incorporated in Member States whose currency is not the euro, should be subject to the same supervisory standards than those applied to payment service providers incorporated in Member States whose currency is the euro. For that purpose, the relevant provisions of Directive (EU) 2015/2366 of the European Parliament and the Council, as replaced by Directive (EU) [please insert reference – proposal for a Directive on payment services and electronic money services in the internal market – COM/2023/366 final], Directive (EU) 2015/843 as replaced by Directive (EU) [please insert reference – proposal for Anti-Money Laundering Directive - COM/2021/423 final] should apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning provision of digital euro payment service by payment service providers established in Member States whose currency is not the euro.

Added:(6) Similarly, as in case of competent authorities of Member States whose currency is the euro under Regulation (EU) …/…*, the competent authorities responsible under Directive (EU) 2015/2366 for supervising the provision of payment services should also, where relevant, cooperate with the European Central Bank for the purposes of supervising the application of payment-related obligations laid down in that Regulation (EU).

Removed:The Single Currency Package responds to the increasing digitalisation of the economy, in which access to cash – currently the only form of the single currency available to citizens – is declining. The Rapporteur supports this package to ensure that the euro, in all its forms, remains the foundation of a competitive, innovative, open and strategically autonomous European economy. Europe’s single currency is more than a means of payment: it is a cornerstone of the Union’s strategic autonomy.

Added:(7) In accordance with Article (4), point (25), of Directive 2015/2366, funds mean banknotes and coins, scriptural money or electronic money. As a new form of central bank money with legal tender, the digital euro should be considered as funds under Directive 2015/2366 as replaced by Directive (EU) [please insert reference – proposal for a Directive on payment services and electronic money services in the internal market - COM/2023/366 final] which extends the definition of funds to all forms of central bank money issued for retail use. The same definition of funds should be included in Regulation (EU) 2021/1230 of the European Parliament and of the Council of 14 July 2021 on cross-border payments in the Union.

Removed:To guarantee continued access to central bank money in the digital era, a digital version of the single currency should be introduced, while reinforcing the right of EU citizens to use cash. Europe must also address its overreliance on non-European payment providers. A genuine European response in payments is needed to strengthen strategic autonomy amidst geopolitical instability.

Added:(7a) Digital euro users should be free to choose the possibility they deem best suitable for authenticating themselves and authorising digital euro transactions, which should include the possibility of using European Digital Wallets. For that purpose, Article 5a(7) of Regulation (EU) No 910/2014 of the European Parliament and of the Council should be amended to reflect that where a provider of European Digital Identity Wallets allows for the integration and use of payment instruments, that provider should ensure that, upon request, a digital euro user is able to access that user’s digital euro account information and initiate digital euro transactions via the user’s European Digital Identity Wallet. Use of the European Digital Identity Wallet should be voluntary and should contribute to a seamless and protected user experience, reduce administrative burden and strneghten trust, security and user control over personal data.

Removed:Under the Rapporteur’s vision, defining that response is the purpose of this proposal. He clearly distinguishes between two digital forms of the single currency accessible to citizens and businesses.

Added:(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment service providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

Removed:On the one hand, the offline digital euro is understood as a tokenised version of cash, not account-based, but operating through “device-to-device” payments. It guarantees privacy, resilience, and universal accessibility even in times of network failure or crisis. Stored and transferred locally on secure devices, it preserves the right of citizens to hold central-bank money in all circumstances. In short: digital cash.

Added:(9) The European Data Protection Supervisor and the European Data Protection Board were consulted in accordance with Article 42 of Regulation (EU) 2018/1725 and delivered a joint opinion on 17 October 2023,

Removed:On the other hand, the online digital euro is conceived as an account-based system that requires a digital euro settlement infrastructure operated through the ECB. By its very nature, the online form of the digital euro entails risks of bank disintermediation, loss of deposits, direct competition with private payment solutions and, ultimately, a negative impact on the financing capacity of European businesses and households.

Added:HAVE ADOPTED THIS REGULATION:

Removed:Today, Europe’s payment ecosystem works: citizens can pay conveniently, and the system is stable. The issue is not one of functionality, but of scale, reach, and dependency. For over twenty years, Europeans have shared a currency but not an indigenous pan-European payment system. Many transactions still depend on non-European providers, exposing Europe to technological and geopolitical risks. The Commission’s 2023 proposals sought to address this via a digital euro, but since then, private initiatives have advanced and Europe’s priorities have evolved.

Added:This Regulation lays down rules concerning:

Removed:The Rapporteur’s amendments offer a nuanced, realistic and updated response. They propose establishing an offline digital euro while making the online version conditional on the absence of a pan-European sovereign retail payment solution, to be verified by the Commission through a market test once the ECB concludes its offline digital euro preparatory work.

Added:(a) the specific obligations that payment service providers incorporated in Member States whose currency is not the euro shall apply when providing digital euro payment services;

Removed:The Rapporteur stresses his agnostic stance toward the outcome of this test, from which he expects an objective assessment of the private sector’s capacity to operate at euro-area scale in person-to-person, point-of-sale and e-commerce payments. It is in the Rapporteur’s interest to clarify that this assessment by the Commission shall in no case delay the ECB’s preparatory work or the overall process.

Added:(b) the supervision and enforcement of the obligations referred to in point (a) by Member States whose currency is not the euro;

Removed:This approach provides a holistic, proportionate and evidence-based response, balancing financial stability with competitiveness in the payments system. Under this framework, the offline digital euro would represent a proportionate European response, free from financial stability risks, and ensuring European payment sovereignty — without prejudging the possibility that the private sector could solve the scale and dependency gaps of the European payments ecosystem through interoperability.

Added:(c) the specific obligations that original equipment manufacturers of mobile devices and providers of electronic communication services within the meaning of Article 2(1) of Directive (EU) 2018/1972 of the European Parliament and of the Council established in Member States whose currency is not the euro shall apply in relation to the digital euro.

Removed:In conclusion, the Rapporteur’s amendments to the establishment of the digital euro are formulated to ensure that the offline digital euro is introduced to address the challenge of the digitalisation of the economy, while the online digital euro is made conditional upon the absence of a pan-European private sovereign retail payment solution. This conditionality ensures that the digital euro acts as a safety net against market fragmentation, not as a parallel payments ecosystem hindering private solutions from reaching pan-European scale or discouraging continuous innovation.

Added:For the purposes of this Regulation, the following definitions apply:

Removed:Nothing in this position questions the importance of developing the wholesale digital euro, which the Rapporteur strongly supports as the most effective means to modernise interbank settlement, enhance cross-border efficiency and strengthen monetary-policy transmission across the euro area.

Added:1. ‘digital euro’ means the digital euro as defined in Article 2, point (1) of Regulation (EU) .../...*;

Removed:Separately, the Rapporteur treats this package as one coherent vision for the future of money in Europe, built upon three reinforcing pillars:

Added:2. 'payment service providers' means a payment service provider as defined in Article 4, point (11) of Directive 2015/2366;

Removed: safeguarding the universality and access to cash,

Added:3. ‘digital euro payment service’ means digital euro payment service as defined in Article 2 point (8) of Regulation (EU) .../...**;

Removed: introducing a digital form of central-bank money following a speedy but cautious approach which will also serve as a means of payment, and

Added:4. ‘residing’ means being legally resident within the meaning of Article 2, point (2), of Directive 2014/92/EU of the European Parliament and of the Council;

Removed: allowing its cross-border provision in a way that respects non euro area Member States and third countries’ competences, and sovereignty and preserves the integrity of the single market.

Added:5. ‘visitor to the euro area’ means a visitor to the euro area as defined in Article 2, point (22), of Regulation (EU) .../...***;

Removed:The Single Currency package sets out a vision of a Europe adapted to the digital era, and committed to its strategic autonomy through openness: Europe leading by building capacity, sovereignty and resilience not by closing markets.

Added:▌

Removed:The rapporteur views this package as a single, coherent response to a twin challenge: Europe’s over-reliance on non-European payment providers and the need to anchor monetary sovereignty in an open, competitive and innovative market to ensure that Europe possesses its own backbone of payment resilience.

Added:6. ‘mobile device’ means a mobile device as defined in Article 2, point (31), of Regulation (EU) .../...*.

Removed:Being this approach the core of the Rapporteur’s proposal, he also addresses several additional concerns regarding the rules, framework and operational aspects of the legislation.

Added:6a. ‘credit institution’ means a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council.

Removed:The rapporteur introduces specific holding limits to ensure that the digital euro is serving as a means of payment and it cannot evolve into a store of value. Holding limits, combined with funding and defunding mechanisms, they prevent excessive accumulation while enabling frictionless daily use, safeguarding the banking sector’s intermediation role and financial stability.

Added:(c) visitors to the euro area;

Removed:Trust also depends on fairness. The Rapporteur sets principles on fees and charges to ensure that PSPs required to distribute the digital euro are fairly compensated while merchants are not overcharged. Since at the time of issuance there will not yet be sufficient information on average unit costs or the total volume of digital-euro transactions, a transition period will be needed. During that period, fees and charges will be based on a “no-worse-off” clause, ensuring a high degree of proportionality by applying criteria comparable to existing means of payment at a granular level.

Added:(d) natural or legal persons residing or established in Member States whose currency is not the euro, subject to the conditions laid down in Article 18 of Regulation (EU) .../...***;

Removed:Moreover, the Rapporteur proposes that if, after a ten-year transition period, it is demonstrated that a cost-based compensation model delivers lower costs, greater efficiency and competition in payment markets, and prevents cross-subsidisation across merchant business models or within the European payments ecosystem, the Commission should propose a new legislative framework on fees and charges for the provision of digital-euro payment services.

Added:(e) natural or legal persons residing or established in third countries, including territories under a monetary agreement with the ▌Union, subject to the conditions laid down in Articles 19 and 20 of Regulation (EU) .../...****;

Removed:The Rapporteur also stresses that citizens will embrace the digital euro only if it protects privacy as effectively as cash protects anonymity. AML/CFT controls shall apply at the user level, not by marking individual digital units, thereby preserving fungibility and preventing programmable or traceable money. The ECB must also ensure that fraud and counterfeiting levels remain below those of comparable instruments. Privacy, security and technological resilience are thus design imperatives, not optional features.

Added:(ea) natural or legal persons residing or established in Member States whose currency is not the euro, or in third countries, where those natural or legal persons exercise their free movement rights in a Member State whose currency is the euro;

Removed:The two accompanying proposals complete this framework. The Regulation on the legal tender of euro banknotes and coins guarantees universal acceptance and access to cash in proportion to citizens’ demand, ensuring financial inclusion and resilience. Its coordination with the digital euro regulation is essential to avoid any perception of substitution. The Regulation on the provision of digital euro services in non-euro-area Member States provides the external dimension, allowing PSPs in those countries to offer digital-euro services under conditions respecting national prerogatives and the integrity of the single market.

Added:(eb) citizens of third countriesy that benefit from a specific arrangement creating free movement rights in a part of the Union.

Removed:In a nutshell, the Rapporteur’s proposal recognises that technological sovereignty in payments cannot be legislated into existence; it must stem from competition, innovation and trust. By prioritising private European infrastructures, the Single Currency Package safeguards both the euro’s stability and Europe’s competitiveness. It modernises the single currency without transforming it into a public payment monopoly.

Added:The European Central Bank may restrict access to and use of the digital euro by the digital euro users referred to in the first subparagraph, points (b) and (c), of this paragraph, subject to the conditions laid down in Article 16 of Regulation (EU) .../... *.

Added:Within the framework of Directive 2015/2366, payment service providers may provide merchants residing or established in a Member State whose currency is not the euro, or in a third country, digital euro payment services allowing them to receive digital euro payment transactions from the persons referred to in the first subparagraph of this paragraph, even if the conditions referred to in Articles 18, 19 and 20 of Regulation (EU) .../...** have not been met, subject to the applicable national law of that Member State or third country.

Added:2. A credit institution incorporated in a Member State whose currency is not the euro shall, upon the request of a client who is a natural person as referred to in Article 13(1), point (a), of Regulation (EU) .../...***, provide that natural person with the basic digital euro payment services referred to in Annex II to Regulation (EU) .../...**** where all of the following conditions are met:

Added:(a) that credit institution provides payment services as referred to in point (1), (2) or (3) of Annex I to Directive (EU) 2015/2366 to natural persons residing in a Member State whose currency is the euro;

Added:(b) that credit institution, provides the services listed in point (a) of this paragraph to more than 400 000 natural persons residing in the euro area as a whole or to 5 % of natural persons residing in a single Member State whose currency is the euro, for three consecutive years; and

Added:(c) that natural person does not hold a payment account, as defined in Article 2, point (3), of Directive (EU) 2014/92, with any payment service provider that provides mandatory digital euro payment services in accordance with Regulation (EU) .../...*****.

Added:3. A credit institution incorporated in a Member State whose currency is not the euro that is subject to the obligations set out in paragraph 2 may, for the purpose of fulfilling those obligations, refer clients who are entitled to receive the services referred to in that paragraph and who request those services, to a branch or subsidiary of that credit institution located in a Member State whose currency is the euro. Such referral shall be deemed to fulfil the obligations set out in paragraph 2.

Added:4. A credit institution incorporated in a Member State whose currency is not the euro that fulfilled the conditions set out in paragraph 2 but which has not fulfilled those conditions for three consecutive years shall not be required to provide a new client, who is a natural person as referred to in Article 13(1), point (a) of Regulation (EU) .../...*, upon that client’s request, with the basic digital euro payment services referred to in Annex II to that Regulation.

Added:Clients who already hold a digital euro payment account with the credit institution concerned shall retain the right to continue receiving the basic digital euro payment services referred to in Annex II to Regulation (EU) .../...**.

Added:Provision of digital euro acquiring services

Added:Payment service providers incorporated in a Member State whose currency is not the euro shall comply with Article 14(1a) of Regulation (EU) .../...*** in respect of their clients established in Member States whose currency is the euro who are payees subject to the mandatory acceptance of the digital euro within the meaning of Article 7(3) of that Regulation, insofar as those payment service providers already provide those clients with acquiring services for comparable means of payment.

Added:Assessment of potential impact on national currency usage

Added:Member States whose currency is not the euro shall each designate a competent authority to monitor and assess the potential impact of the use of the digital euro on its national currency.

Added:Competent authorities designated pursuant to the first subparagraph shall report to the Commission and to the European Central Bank every three years.

Added:Where the digital euro is used in a Member State whose currency is not the euro alongside its national currency (‘euroisation’) and such use exceeds 10 % of cross-border retail payments in that Member State, the report referred to in the second subparagraph of this paragraph shall include a recommendation to temporarily suspend, for a period of six months, the application of Article 3(1), third subparagraph.

Added:1. Without prejudice to the provisions of this Regulation, the requirements laid down in Article 13, ▌Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) .../...* shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 3(1) and (2) of this Regulation.

Added:The requirement laid down in Article 33 of Regulation (EU) .../...** shall be applicable to original equipment manufacturers of mobile devices and providers of electronic communication services within the meaning of Article 2(1) of Directive (EU) 2018/1972 established in Member States whose currency is not the euro.

Added:2. In accordance with Article 4(25) of Directive (EU) 2015/2366▌, the provisions of that Directive shall apply to payment transactions in digital euro.

Added:3. In accordance with Article 2(10) of Regulation (EU) 2021/1230 ▌, the provisions of that Regulation shall apply to payment transactions in digital euro.

Added:4. Without prejudice to Articles 37 of Regulation .../...***, Regulation (EU) 2023/1113 and Directive (EU) 2015/849 of the European Parliament and of the Council ▌shall apply with respect to the digital euro.

Added:1. Directive (EU) 2015/2366 of the European Parliament and of the Council shall apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning the activities of payment service providers established in Member States whose currency is not the euro in relation to the digital euro for the purposes of applying this Regulation and the obligations referred to in Chapters IV, V, VI and VII of Regulation (EU) .../...****.

Added:2. Directive (EU) 2015/849 shall apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States concerning the activities of payment service providers incorporated in Member States whose currency is not the euro established in relation to the digital euro for the purpose of applying this Regulation and the obligations contained in Chapter IX of Regulation (EU) .../...*.

Added:For the purposes of supervising the application of Chapters IV, V and VII of Regulation (EU) .../...** the competent authorities referred to in Article 5(1) shall, where appropriate, cooperate with the European Central Bank.

Added:Amendment to Regulation (EU) No 910/2014

Added:In Article 5a(7) of Regulation (EU) No 910/2014, the following subparagraph is added:

Added:“Where a provider of a European Digital Identity Wallet allows for the integration and use of payment instruments, that provider shall ensure effective interoperability and provide fair, reasonable, and non-discriminatory access to payment service providers distributing the digital euro, including to the European Digital Identity Wallet’s hardware and software features that are essential for the secure processing and execution of online and offline digital euro payment transactions via that European Digital Identity Wallet.”

Added:In Article 2 of Regulation (EU) 2021/1230 of the European Parliament and of the Council, point (10) is replaced by the following:

Added:“(10) ‘funds’ means central bank money issued for retail use, scriptural money or electronic money;”.

Added:This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Added:This Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.

Added:Done at Brussels,

Added:For the European Parliament For the Council

Added:The President The President