What changed between the draft committee report and the plenary report

Removed:Recital 7: (7) With a view to an effective implementation of their obligation to ensure sufficient and effective access to cash in proportion with citizens’ demand, Member States should regularly monitor the level of access to cash throughout their territory, in all their different regions, including the outermost regions, covering both urban and non-urban areas, with special attention to sparsely populated areas, on the basis of common indicators which allow for comparisons between the Member States. In conducting their monitoring activities, Member States should take into account citizens’ effective demand for cash and payment habits resulting from changes in their preferences and technological developments. Common indicators could include factors that affect access to cash, such as density of cash access points in relation to population, withdrawal and deposit conditions, including fees, the existence of different networks with different access modalities for customers, urban, non-urban and low populated areas, and the outermost regions, and socio-economic variations, and access difficulties for certain population groups. If in the light of their assessment access to cash is deemed sufficient and effective on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continuously monitor the situation. If a Member State concludes that access to cash is not sufficient and effective in all or part of …

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

Removed:Recital 8: (8) The Commission should be empowered to adopt implementing acts on a set of common indicators of general application in the euro area, which should take into account the location and scale of cash-access infrastructure vis-à-vis citizens’ effective demand for cash and payment habits resulting from changes in their preferences and technological developments. Those indicators would allow Member States to effectively monitor and assess the acceptance of payments in cash and access to cash throughout their territory, in all their different regions, including the outermost regions, covering both urban and non-urban areas, with special attention to sparsely populated areas. In view of the preparation of such implementing acts, the Commission should consult the European Central Bank.

Added:2023/0208 (COD)

Removed:Recital 9: (9) The Commission should be empowered to adopt implementing acts addressed to a specific Member State when the measures proposed by that Member State appear insufficient or in cases where, in spite of the findings of the annual report sent by that Member State, ex ante unilateral exclusions of cash are undermining the principle of mandatory acceptance of payments in euro banknotes and coins and/or where access to cash is not sufficient and effective. Such an implementing act could require the Member State concerned to take measures such as those outlined in recitals 7 and 8, or measures that have been considered effective in other Member States in ensuring that the principles of mandatory acceptance of payments in cash or sufficient and effective access to cash in proportion with citizens’ demand are not undermined.

Added:Proposal for a

Removed:Recital 10: (10) In accordance with the principle of sincere cooperation, the Commission, the European Central Bank and the designated national competent authorities with the required powers as regards acceptance of payments in cash and access to cash, and over the cash-related market activities of the cash industry should closely collaborate on issues related to acceptance of payments in cash and access to cash. A regular dialogue among these institutions and authorities, based notably on the annual reports of Member States to the Commission and the European Central Bank, should aim at identifying cases of widespread ex ante unilateral exclusions of cash and insufficient access to cash in specific national territories or regions. It would also aim at designing and adopting remedial measures that Member States should adopt as a means to comply with their obligations to ensure acceptance of cash and sufficient and effective access to cash.

Added:REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Removed:Recital 11: (11) In order to ensure other adequate exceptions to the mandatory acceptance of euro cash may be introduced at a later stage if they are required, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by introducing other adequate exceptions to the principle of mandatory acceptance for the euro area as a whole. The Commission may only adopt such other adequate exceptions if they are necessary, proportionate to their aim, and preserve the effectiveness of the legal tender status of euro cash. The power of the Commission to adopt delegated acts for the introduction of other adequate exceptions to the mandatory acceptance of accept euro cash should be without prejudice to the possibility for Member States, pursuant to their own powers in areas of shared competence, to adopt national legislation introducing exceptions to the mandatory acceptance deriving from the legal tender status in accordance with the conditions laid down by the Court of Justice of the European Union in the judgment in Joined Cases C-422/19 and C-423/19. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, t…

Added:on the legal tender of euro banknotes and coins

Removed:Recital 13: (13) This Regulation ensures full respect for the fundamental right of freedom to conduct a business and the fundamental right of consumer protection enshrined in Article 16 and 38 of the Charter of Fundamental Rights of the European Union respectively. This Regulation concerns the preferred payment method of the currency that has legal tender status, which payers legitimately may choose to settle their debts. Thus, the measures in this Regulation only concern the way enterprises receive payments. The interference with those fundamental rights is therefore indirect and very limited. It is justified by the general interest objective of ensuring the effectiveness of legal tender, and is proportionate to this objective.

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

Removed:Recital 14: (14) The share of cash payments compared to electronic payments could vary across certain vulnerable groups including older age groups, persons with disabilities, and people with limited digital skills and lower income levels. This proposal is consistent with the European Accessibility Act18, which covers automated teller machines (ATMs). Furthermore, financially excluded people, such as the unbanked, asylum seekers and migrants, who may not be able or willing to use means of payment supplied by the private sector, rely on cash as their payment method. Cash is considered to provide for a clear overview of expenses, with high degrees of ease of use, speed, safety and privacy. Vulnerable groups are more at risk of losing their access to a method of payment if their access to cash deteriorates. Thus, this Regulation would aim to preserve financial inclusion of vulnerable groups with a dependency on cash payments by ensuring that everyone in the euro area would be free to choose the preferred payment method and has access to basic cash services, while supporting Member States in continuing their policy efforts to promote digital financial inclusion, for example through measures aimed to increase financial and specifically digital finance literacy in education and training systems, as well as to address gaps in digital infrastructure, including in rural areas.

Added:Having regard to the Treaty on the functioning of the European Union and in particular Article 133,

Removed:Article 2 – paragraph 1: 1. This Regulation applies, in the Member States whose currency is the euro, to the settlement of pecuniary debts in so far as they are to be settled in cash, in whole or in part, where a payment obligation exists in accordance with the applicable law or established legal practices. To ensure the effectiveness of the legal tender of cash, this Regulation applies also to ex ante unilateral exclusion of payments in cash and to the access to cash.

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

Removed:Article 3 – paragraph 1 – point 4: 4. ‘ex ante unilateral exclusions of cash’ means a situation when a retailer or service provider unilaterally excludes cash as a payment method for example by introducing a ‘no cash’ sign or by using a pre-formulated standard form contract, creating a situation where the payer and payee do not freely agree to a means of payment for a purchase;

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

Removed:Article 3 – paragraph 1 – point 8: 8. ‘enterprise’ means an entity engaged in an economic activity, irrespective of its legal form, including partnerships or associations regularly engaged in an economic activity.

Added:Acting in accordance with the ordinary legislative procedure,

Removed:Article 5 – paragraph 1 – subparagraph 1 – point b: (b) where, prior to the payment, the payee has agreed with the payer on a different means of payment, without prejudice to Article 5a.

Added:Whereas:

Removed:Article 5 – paragraph 1 – subparagraph 2 a (new): For the purposes of point (b), the payee shall have the burden of proof to establish that such an agreement existed in a particular case.

Added:(1) According to Article 3(1), point (c), of the Treaty on the Functioning of the European Union (TFEU), the Union has exclusive competence as regards monetary policy for the Member States whose currency is the euro.

Removed:Article 5 – paragraph 2 – introductory part: 2. For the purposes of the application of paragraph 1, point (a), such legitimate grounds may include:

Added:(2) Pursuant to Article 128(1) of the Treaty on the Functioning of the European Union and Article 10 of Council Regulation (EC) No 974/98 the euro banknotes are to be the only banknotes which have the status of legal tender in Member States whose currency is the euro. Pursuant to Article 11 of Regulation (EC) No 974/98, euro coins shall be the only coins which have the status of legal tender in the Member States whose currency is the euro.

Removed:Article 5 a (new): Article 5a / Prohibition of ex ante unilateral exclusions of cash / Payees subject to the obligation to accept euro banknotes and coins shall use only contractual terms that have been individually negotiated or commercial practices (e.g. ‘no cash’ signs) that have the objective or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro. / Contractual terms or commercial practices as referred to in the first subparagraph shall not be binding on the payer. / Contractual terms shall not be regarded as having been individually negotiated where they have been drafted in advance and where the payer has not been able to influence their substance, particularly in the context of a pre-formulated standard form contract.

Added:(3) Commission Recommendation on the scope and effects of legal tender of euro banknotes and coins provides for a common definition of legal tender of euro banknotes and coins.

Removed:Article 6 – title: Other adequate exceptions to the principle of mandatory acceptance of euro banknotes and coins of a monetary law nature

Added:(4) In a judgment of 26 January 2021, the Court of Justice of the European Union clarified that the concept of ‘legal tender’ mentioned in Article 128(1) TFEU is a concept of Union law that must be given an autonomous and uniform interpretation throughout the EU. Secondly, the Court held that the concept of ‘legal tender’ of a means of payment denominated in a currency unit signifies that “that means of payment cannot generally be refused in settlement of a debt denominated in the same currency unit, at its full face value, and without surcharges for the payer, with the effect of discharging the debt”. Thirdly, the Court stated that an obligation to accept euro banknotes and coins may, in principle, be restricted by the Member States whose currency is the euro for reasons of public interest and pursuant to their competences outside of the area of monetary law and policy and of other exclusive Union competences, provided those restrictions are justified by a public interest objective and proportionate to it.

Removed:Article 6 – paragraph 1: The Commission is empowered to adopt delegated acts in accordance with Article 10 to supplement this Regulation by identifying other adequate exceptions of a monetary law nature to the principle of mandatory acceptance. Those exceptions shall be justified by an objective of public interest and proportionate to that aim, shall not undermine the effectiveness of the legal tender status of euro cash, and shall only be permitted provided that other means for the payment of monetary debts are available. When preparing those delegated acts, the Commission shall consult the European Central Bank.

Added:(5) The acceptance of euro banknotes and coins tendered as means of payment can exceptionally be refused if the refusal is made in good faith, based on legitimate grounds and concrete circumstances, which are beyond the control of the payee, and if the refusal is proportionate. For example, the refusal can be justified if for the settlement of a monetary debt the tendered euro banknote is disproportionate compared to the amount owed to the payee, such as the tendering of a two hundred euro banknote for the settlement of a debt of less than five euro. In accordance with Council Regulation 974/98, except for the issuing authority and for those persons specifically designated by the national legislation of the issuing Member State, no party should be obliged to accept more than 50 coins in any single payment. Other legitimate grounds should include exceptional cases such as when the payee has no change available at the moment when cash is tendered in payment, or situations where the characteristics of bankotes or coins tendered by the payer do not comply with counterfeiting prevention or anti-money laundering and combating the financing of terrorism financing standards.Contractual requirements or technical restrictions imposed by third parties should not constitute legitimate grounds for the refusal of euro banknotes and coins.

Removed:Article 7 – paragraph 1: 1. In order to ensure the acceptance of cash in accordance with Article 4(2), Member States shall monitor the acceptance of payments in cash and the level of ex ante unilateral exclusions of payments in cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, on the basis of the common indicators adopted by the Commission and shall assess the situation.

Added:(5a) The acceptance of euro banknotes and coins tendered as means of payment should also be able to be refused where, prior to payment, the payee has agreed with the payer on a different means of payment. Where there is any doubt as to the existence of such an agreement, the burden of proof should always lie with the payee. Lastly, banknotes and coins tendered as means of payment should be able to be refused where the point of sale is an unmanned point of sale, in view of the mechanical and security constraints inherent in such points of sale. Without prejudice to the need to have access to essential services for all citizens, in some cases, unmanned cashless points of sale can prove to be the most economical solution to offer services, especially where the provision of cash would produce disproportionate costs given security and accessibility reasons, which could hamper the offering of services.

Removed:Article 7 – paragraph 3: 3. If a Member State considers that the level of acceptance of payments in cash in their territory or parts thereof undermines mandatory acceptance of euro banknotes and coins, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Added:(6) In order to ensure that the principle of mandatory acceptance of payments in euro banknotes and coins is not effectively undermined by widespread and structural refusals of cash payments, payees who are subject to the mandatory acceptance of euro banknotes and coins should not unilaterally exclude payments in cash through contractual terms that have not been individually negotiated. That includes commercial practices which are based in the context of a pre-formulated standard form contract or which have been drafted in advance, such as ‘no cash’ signs, that have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro. Therefore, Member States should regularly monitor the level of unilateral ex ante exclusions of payments in cash when payments are performed in physical premises throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, on the basis of common indicators which allow for comparisons between the Member States. If in light of their assessment acceptance of payments in cash is ensured on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continue monitoring the situation. If a Member State concludes that ex ante unilateral exclusions of cash undermine the mandatory acceptance of payments in euro banknotes and coins in all or part of its territory, that Member State should take immediate effective and proportionate measures to remedy the situation, such as a prohibition or restrictions on ex ante unilateral exclusions of cash in all or parts of its territory, for example in rural areas, or in certain sectors which are deemed essential such as post offices, supermarkets, pharmacies or healthcare, or for certain types of payments which are deemed essential.

Removed:Article 8 – paragraph 1: 1. Member States shall ensure sufficient and effective access to cash in proportion with citizens’ demand throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. In order to ensure sufficient and effective access to cash, Member States shall monitor access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particularsparsely populated, areas, on the basis of the common indicators adopted by the Commission and shall assess the situation.

Added:(6a) Member States should provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with competent national authorities concerning cases of unlawful refusal to accept cash and insufficient and ineffective access to cash.

Removed:Article 8 – paragraph 3: 3. If a Member State considers that sufficient and effective access to cash is not ensured, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Added:(7) With a view to an effective implementation of their obligation to ensure ▌effective access to cash, Member States should regularly monitor the level of access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban areas, in particular sparsely populated areas, paying particular attention to the needs of vulnerable groups, such as older persons, persons with disabilities, people with low income or low digital skills and unbanked persons, on the basis of common indicators which allow for comparisons between the Member States. Common indicators could include factors that affect access to cash, such as density of cash access points (such as ATM’s, over-the-counter services, cash-back agrements and mobile offices) in relation to population, withdrawal and deposit conditions, including fees, the existence of different networks with different access modalities for customers, urban-rural and socio-economic variations, and access difficulties for certain population groups. If in the light of their assessment access to cash is deemed ▌effective on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continue monitoring the situation. If a Member State concludes that access to cash is not ▌effective in all or part of its territory, or is at risk of deteriorating in the absence of action, appropriate remedial measures should be taken to remedy the situation, such as geographic access requirements on payment service providers providing cash withdrawal services to maintain cash services at a sufficient number of their branch offices where they conduct business, or through an appointed agent for online only credit institutions, or maintain a sufficient density of automated teller machines (ATMs) where they conduct business taking into account a good geographic spread in relation to population, also taking into account possible pooling of ATMs. Other remedial measures could include recommendations addressed to non-credit institutions, such as independent ATM operators, retailers or post offices, encouraging to complement the cash services of banks. Member States should also consider ways of promoting operational efficiency, including through voluntary guidelines or partnership agreements with payment service providers.

Removed:Article 9 – paragraph 2: 2. For the purposes of Articles 7 and 8, the Commission shall adopt implementing acts of general application on a set of common indicators Member States shall use to monitor and assess the acceptance of payments in cash and access to cash in proportion with citizens’ demand throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. Those implementing acts shall be adopted [within X months after the entry into force of this Regulation] in accordance with the advisory procedure referred to in Article 11. When preparing those implementing acts, the Commission shall consult the European Central Bank.

Added:(7a) Member States should establish cash resilience plans to ensure effective access to cash in situations where there is widespread and severe disruption of the continuity of digital means of payments, or where there is at least a credible and imminent risk of such disruption, affecting, in whole or in a part, the territory of a Member State or several Member States of the euro area. Those plans should include a combination of measures for different scenarios leading to such a disruption, including natural or human-made disasters, and provide for risk mitigation solutions.

Removed:Article 9 – paragraph 3: 3. The designated national competent authorities shall notify the results of their monitoring and assessment of the situation as regards the levels of acceptance of payments in cash and access to cash in proportion with citizens’ demand, giving grounds and data for their assessment, in an annual report to be addressed to the Commission and the European Central Bank as referred to in Article 13.

Added:(8) The Commission should adopt guidelines to define ▌a set of common indicators ▌, which would allow the Member States to effectively monitor and assess the acceptance of payments in cash and access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. In view of the preparation of those guidelines, the Commission should consult the European Central Bank and national central banks.

Removed:Article 10 – paragraph 6: 6. A delegated act adopted pursuant to Article 6 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.

Added:(12) In order to ensure uniform conditions for the provisions on the acceptance of payments in cash and sufficient and effective access to cash, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. The examination procedure should be used for the adoption of the implementing acts ▌ addressed to individual Member States which in certain circumstances may need to adopt appropriate measures which would reflect the specificities of their national territories, regions and urban areas, in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

Removed:Article 11 – paragraph 2: 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Added:(13) This Regulation ensures full respect for the fundamental right of freedom to conduct a business and the fundamental right of consumer protection enshrined in Article 16 and 38 of the Charter of Fundamental Rights of the European Union respectively. This Regulation concerns the preferred payment method of the currency that has legal tender status, which payers legitimately may choose to settle their debts. Thus, the measures in this Regulation only concern the way enterprises receive payments. The interference with those fundamental rights is therefore indirect and very limited. It is justified by the general interest objective of ensuring the effectiveness of legal tender, and is proportionate to this objective.

Removed:Article 13 – paragraph 1 – point a: (a) the state of play concerning exceptions to the principle of mandatory acceptance pursuant to Article 5;

Added:(14) The share of cash payments compared to electronic payments could vary across certain vulnerable groups including older age groups, persons with disabilities, and people with limited digital skills ▌, lower income levels and unbanked persons. This proposal is consistent with the European Accessibility Act, which covers automated teller machines (ATMs). Furthermore, financially excluded people, such as the unbanked, asylum seekers and migrants, who may not be able or willing to use means of payment supplied by the private sector, rely on cash as their payment method. Cash is considered to provide for a clear overview of expenses, with high degrees of ease of use, speed, safety and privacy. These vulnerable groups are more at risk of losing their access to a method of payment if their access to cash deteriorates. Thus, this Regulation would aim to preserve financial inclusion of vulnerable groups with a dependency on cash payments by ensuring that everyone in the euro area would be free to choose the preferred payment method and has access to basic cash services, while supporting Member States in continuing their policy efforts to promote digital financial inclusion, for example through measures aimed to increase financial and specifically digital finance literacy in education and training systems, as well as to address gaps in digital infrastructure, including in rural areas.

Removed:Article 13 – paragraph 1 – point c: (c) the implemented penalties including financial penalties and non-criminal fines pursuant to Article 12.

Added:(15) In accordance with the principle of proportionality, it is necessary and appropriate for the achievement of the basic objective of ensuring the acceptance of cash and access to cash to lay down the necessary rules. This Regulation does not go beyond what is necessary in order to achieve the objectives pursued, in accordance with Article 5(4) of the Treaty on European Union.

Removed:Article 14 – paragraph 1: Member States shall provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with competent national authorities about cases of unlawful refusal to accept cash and insufficient and ineffective access to cash.

Added:Subject matter

Added:This Regulation applies in the Member States whose currency is the euro. It lays down detailed rules on the scope and effects of the legal tender of, and access to, euro banknotes and coins, as provided for, respectively, by Article 128(1) TFEU and by Article 11 of Regulation (EC) No 974/98, in order to ensure its effective use as a single currency.

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:Scope

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:1. This Regulation applies, in the Member States whose currency is the euro, to the settlement of pecuniary debts in so far as they are to be settled in cash, in whole or in part, where a payment obligation exists in accordance with the applicable law or established legal practices. To ensure the effectiveness of the legal tender of cash, this Regulation applies also to ex ante unilateral exclusion of payments in cash and to the access to cash.

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:2. This Regulation shall not apply to payments for goods or services purchased at a distance, including online.

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:Definitions

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

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:1. ‘cash’ means euro banknotes and coins;

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:2. ‘cash industry’ means credit institutions offering payment accounts to customers and cash service providers involved in the managing of the distribution and circulation of euro banknotes and coins;

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

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:4. ‘ex ante unilateral exclusions of cash’ means a situation when a retailer or service provider unilaterally excludes cash as a payment method for example by introducing a ‘no cash’ sign or by stipulating that exclusion in, or using, a pre-formulated, non-negotiable, standard form contract, creating a situation where the payer and payee do not freely agree to a means of payment for a purchase;

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:5. ’payer’ means any person who makes a payment in euro cash;

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:6. ’payee’ means any person who is the intended recipient of funds which have been the subject of a payment transaction in euro cash;

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

Added:7. ‘face value’ means the denomination in euros of a euro banknote or coin, as printed on that banknote or minted on that coin;

Removed: safeguarding the universality and access to cash,

Added:8. ‘enterprise’ means an entity engaged in an economic activity, irrespective of its legal form, including partnerships or associations regularly engaged in an economic activity;

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:8 a. ‘unmanned point of sale’ means a physical device or system via which goods or services are provided directly to the payer by or on behalf of the payee in return for payment, without the presence of any staff or agents of the payee, and includes vending machines, ticketing machines, parking meters, self-service fuel and charging stations, and other similar systems.

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:Legal tender

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:1. The legal tender status of euro banknotes and coins shall entail their mandatory acceptance, at full face value, with the power to discharge from a payment obligation.

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:2. In accordance with the mandatory acceptance of cash, the payee shall not refuse euro banknotes and/or coins tendered in payment to comply with that obligation.

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:3. In accordance with the acceptance at full face value of cash, the monetary value of euro banknotes and/or coins tendered in settlement of a debt shall be equal to the amount in euro indicated on the banknotes and/or coins. Surcharges on the settlement of debt with euro banknotes and coins shall be prohibited.

Removed:The Rapporteur clarifies the framework under which payment service providers (PSPs) established and supervised in the Union may distribute the digital euro in line with Directive (EU) 2015/2366. PSPs shall offer online and offline digital-euro payment services to residents and businesses in euro-area Member States, and to certain non-resident users, under defined conditions.

Added:4. In accordance with the power to discharge from a payment obligation, a payer shall be able to discharge from a payment obligation by tendering euro banknotes and coins to the payee.

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:Exceptions to the principle of mandatory acceptance of euro banknotes and coins

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:1. By way of derogation from Article 4(2), a payee shall be entitled to refuse euro banknotes and coins in any of the following cases:

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:(a) where a refusal is made in good faith and where such refusal is based on legitimate ▌grounds in line with the principle of proportionality in view of concrete circumstances beyond the control of the payee;

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:(b) where, prior to the payment, the payee has agreed with the payer on a different means of payment, without prejudice to Article 5a;

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:(ba) where the goods or services are provided to the payer at an unmanned point of sale, in view of the mechanical and security constraints inherent in such points of sale, taking into account the need to have access to essential services as defined in Directive (EU) 2022/2557 of the European Parliament and of the Council.

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:For the purposes of the first subparagraph, point (b), the payee shall bear the burden of proof to establish that such an agreement existed in a particular case.

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:2. For the purposes of paragraph 1, point (a), the burden of proof to establish that legitimate grounds exist in a particular case and that the refusal to accept euro banknotes and coins was proportionate shall lie with the payee.

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:For the purposes of the application of paragraph 1, point (a), such legitimate grounds may include:

Added:i. Regarding high denomination banknotes, if the value of the banknote tendered is manifestly disproportionate compared to the value of the amount to be settled.

Added:ii. In exceptional cases, if the enterprise has no change available at the moment where the cash is tendered in payment, or if there would be not enough change available as a result of that payment for an enterprise to carry out its normal daily business transactions.

Added:iii. Situations where, prior to payment, the payee realises that the characteristics of the banknotes or coins tendered by the payer do not comply with Council Regulation (EC) No 1338/2001 or are not fit for circulation according to the decision of the European Central Bank of 10 December 2009 on the approval of the volume of coin issuance in 2010.

Added:2a. Article 4 is without prejudice to any measure taken by the payer or the payee in order to comply with Union law on the prevention of money laundering and terrorist financing.

Added:Prohibition of ex ante unilateral exclusions of payments in cash

Added:Any contractual terms relied on by payees subject to the obligation to accept euro banknotes and coins, which have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro, shall be negotiated individually. Such contractual terms shall not be regarded as having been negotiated individually where they have been drafted in advance and where the payer has not been able to influence their substance, particularly in the context of a pre-formulated standard form contract.

Added:The payees referred to in the first subparagraph shall not engage in commercial practices (e.g. ‘no cash’ signs) that have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro.

Added:Contractual terms and commercial practices prohibited pursuant to the first and second subparagraphs shall not be binding on the payer.

Added:▌

Added:▌

Added:Acceptance of payments in cash

Added:1. In order to ensure the acceptance of cash in accordance with Article 4(2), Member States shall monitor on a regular basis the acceptance of payments in cash and the compliance with the prohibition of ex ante unilateral exclusions of payments in cash referred to in Article 5a throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, and shall take immediate remedial measures on the basis of the common indicators drafted in accordance with the Commission guidelines adopted pursuant to Article 9(2)and shall assess the situation.

Added:2. Member States shall notify the results of their monitoring and assessment of the situation, and effects of remedial measures, as regards the level of acceptance of payments in cash in accordance with Article 9(3).

Added:3. If a Member State considers, on the basis of the monitoring and assessment referred to in paragraph 1 of this Article, that the level of acceptance of payments in cash in their territory or parts thereof undermines mandatory acceptance of euro banknotes and coins established in this Regulation, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Added:Access to cash

Added:1. Member States shall ensure ▌effective access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, paying particular attention to the needs of vulnerable groups, such as older persons, persons with disabilities, people with low income or low digital skills and unbanked persons. In order to ensure ▌effective access to cash, Member States shall monitor access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated areas, on the basis of the common indicators drafted in accordance with Article 9(2) and shall assess the situation continuously.

Added:2. Member States shall notify the results of their monitoring and assessment of the situation as regards access to cash in accordance with Article 9(3).

Added:In carrying out the monitoring and assessment referred to in paragraph 1, Member States may be guided, inter alia, by the availability and accessibility of cash services, including the presence of ATMs and over‑the‑counter services, cash-back agreements and mobile offices, with special attention to their geographical distribution, opening hours, affordability and compliance with accessibility requirements.

Added:3. If a Member State considers, on the basis of the monitoring and assessment referred to in paragraph 1, that ▌effective access to cash is not ensured, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Added:3a. In order to ensure effective access to cash in a sustainable and cost-effective manner, and with a view to avoiding unnecessary burdens on payment service providers, Member States shall consider the need to promote operational efficiency, including through voluntary guidelines, partnership arrangements with payment service providers, or shared infrastructures. In that context, Member States may take measures to encourage retailers to provide cash-back and cash-in services, without any purchase obligation, at points of sale as a means to enhance cash circulation, with monitoring of such measures integrated into the annual reports under Article 13.

Added:3b. Member States may take adequate measures to raise public awareness about the right and benefits, such as security or resilience, of using cash as legal tender and the available means to access cash services, with a focus on persons with disabilities, functional limitations or limited digital skills, and the elderly.

Added:Resilience of cash

Added:Member States shall ensure that a cash resilience plan or a combination of measures is established in order to ensure effective access to cash in situations where there is widespread and severe disruption of the continuity of digital means of payments or a credible and imminent risk of such disruption that affects or threatens to affect, in whole or in part, a Member State or the euro area. The resilience plan or the combination of measures, as applicable, shall include different scenarios, including natural or human-made disasters, and address the risk of each scenario.

Added:Procedural aspects

Added:1. With a view to implementing the obligations set out in Articles 7, 8 and 8a, Member States shall each designate one or more national competent authorities with the required powers as regards acceptance of payments in cash and access to cash, and over the cash-related market activities of the cash industry. Those authorities shall have the necessary resources and powers to enable them to receive complaints from citizens about possible infringements of this Regulation. Those authorities shall also ensure that the channels for complaints are easily accessible, transparent and clearly understandable for citizens and businesses.

Added:2. For the purposes of Articles 7 and 8, the Commission shall jointly adopt guidelines to define a set of common indicators to be used by Member States ▌to monitor and assess the acceptance of payments in cash and access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. Those guidelines shall be published … [X months after the entry into force of this Regulation] in accordance with the advisory procedure referred to in Article 11. When preparing those guidelines, the Commission shall consult the European Central Bank and national central banks.

Added:3. The designated national competent authorities shall notify the results of their monitoring and assessment of the situation as regards the levels of acceptance of payments in cash and access to cash, giving grounds and data for their assessment, in an annual report to be addressed to the Commission and the European Central Bank as referred to in Article 13. The designated national competent authorities shall publish those reports in a manner appropriate to ensure transparency and public accountability.

Added:4. If a Member State considers that the level of acceptance of payments in cash undermines mandatory acceptance of euro banknotes and coins or that ▌effective access to cash is not ensured, it shall take remedial measures without imposing excessive financial or operational costs on market participants. The Member State shall indicate in its annual report the remedial measures, including any enforcement mechanisms, that it commits to take or has taken in order to comply with the obligations set out in Articles 7 and 8. The remedial measures shall contain a binding timeline and clear milestones and shall enter into force without undue delay.

Added:5. The Commission shall examine the annual reports in close consultation with the European Central Bank. If the remedial measures proposed by a Member State pursuant to paragraph 4 appear insufficient, or if the Commission considers that the acceptance of cash payments or ▌effective access to cash in a Member State is not in compliance with the obligations set out in Articles 7 and 8 despite the remedial measures proposed in the annual report, the Commission shall adopt implementing acts providing for adequate and proportionate measures that shall be adopted by the Member State concerned within the deadline laid down in the respective implementing act. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 11. When preparing those implementing acts, the Commission shall consult the European Central Bank.

Added:▌

Added:Committee procedure

Added:1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

Added:2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Added:Penalties

Added:National laws, regulations and administrative provisions shall lay down the rules on penalties ▌ applicable to infringements of this Regulation and the administrative sanctions and other administrative measures in respect of the breaching or circumvention of this Regulation. Member States shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. The respective national regulations for the acceptance of coins shall apply. Member States shall, within one year after the entry into force of this Regulation, notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.

Added:Annual reports

Added:1. Member States shall submit on an annual basis a report to the Commission and the European Central Bank including information on the following aspects:

Added:(a) the state of play concerning exceptions to the principle of mandatory acceptance pursuant to Article 5;

Added:(b) detailed data and assessment of the situation in the Member State as regards acceptance of payments in cash and access to cash, and the remedial measures to be taken pursuant to Articles 7 and 8;

Added:(c) the implemented penalties including financial penalties and non-criminal fines pursuant to Article 12.

Added:2. The first annual report shall be submitted one year after the entry into force of this Regulation. Subsequent annual reports shall be submitted yearly after the date of the entry into force of this Regulation.

Added:3. The Commission shall examine the annual reports in close consultation with the European Central Bank.

Added:3a. All statistical analyses on the acceptance and availability of cash which are presented in detail or in summary form in the annual reports shall be freely available online in an official language of the Member State concerned and also in English. The methods for the statistical collection of that information and for its evaluation shall be explained in detail.

Added:All complaints submitted to the competent national supervisory authority referred to in Article 9 shall be listed in a manner that complies with data protection requirements, including a sufficient description of the outcome of the subsequent investigation and, in the event of an infringement, the extent to which this Regulation was successfully enforced. That information shall be made available on an EU website.

Added:Duty of Member States to inform about remedies

Added:Member States shall provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with the competent national authority about cases of unlawful refusal to accept cash and insufficient and ineffective access to cash. The information shall be easily accessible, comprehensible and available in English as well as in an official language of the Member State concerned.

Added:Interaction between euro banknotes and coins and the digital euro

Added:1. Euro banknotes and coins and the digital euro shall be convertible into each other at par.

Added:2. Payees of a monetary debt denominated in euro shall accept payments in euro banknotes and coins according to the provisions of this Regulation, irrespective of whether they accept payments in digital euro in accordance with Regulation [XXX on the establishment of the digital euro]. Where the acceptance of euro banknotes and coins and the digital euro is mandatory in accordance with the provisions of this Regulation and Regulation (XXX on the establishment on the Digital Euro), the payer is entitled to choose the means of payment. The establishment of the digital euro shall not diminish the relevance of euro cash. Both forms of public money shall coexist and offer citizens complementary means of payment, ensuring choice, resilience and universal access.

Added:Amendment to Directive (EU) 2020/1828

Added:In Annex I to Directive (EU) 2020/1828, the following point is added:

Added:‘(70) Regulation (EU) 20../…. of the European Parliament and of the Council on the legal tender of euro banknotes and coins (OJ L[…], [……….], [p. ..]).’

Added:Review

Added:By [date-five years after the entry into force], the Commission shall carry out a review on the operation and effects of this Regulation and submit a report to the European Parliament and to the Council. Member States shall provide the Commission with necessary information for the preparation of that report. The report shall be accompanied by a legislative proposal, where appropriate.

Added:Entry into force

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.