What changed between the draft committee report and the plenary report

Removed:EXPLANATORY STATEMENT

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.

Change 2

Changed:The Rapporteur clarifiesWithin the framework underof whichDirective (EU) 2015/2366, payment service providers (PSPs) establishedincorporated andin supervisedMember inStates thewhose Unioncurrency mayis distributenot the digital euro may, in lineaccordance with Directivethe (EU)framework 2015/2366.laid PSPsdown shallin offerRegulation online(EU) and.../...**, offlineprovide digital-euroany paymentof servicesthe todigital residentseuro andpayment businessesservices inreferred euro-areato Memberin States,Annex andI to certain non-resident users, underthat definedRegulation conditions.to:

Change 3

Removed:Distinct rules apply to the online and offline digital euro. For the online digital euro, PSPs must enable users to fund and defund their digital-euro accounts—manually or automatically—from or to non-digital-euro accounts, offline devices or cash, within limits based on financial stability. For the offline digital euro, PSPs shall provide equivalent functionalities through secure devices, allowing users and merchants to load or redeem balances in line with stability and AML requirements.

Added:(a) natural or legal persons residing or established in ▌Member States whose currency is the euro;

Removed:The amendments establish an automatic defunding mechanism linking each online digital-euro account to a single non-digital-euro account designated by the user, ensuring compliance with holding limits and continuity of payments. The digital euro distributed by PSPs shall be convertible at par with other forms of euro-denominated money, and users shall maintain a contractual relationship only with PSPs, not with the ECB or national central banks. Users may hold one or several online accounts with the same or different PSPs, and providers must make information on features and conditions publicly available free of charge.

Added:(b) natural or legal persons no longer residing or established in Member States whose currency is the euro, but who opened a digital euro payment account at the time they were residing or were established in those Member States▌;

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) .../...*****.