Digital Euro Faces Delay as Rapporteur Seeks Narrower Scope

The rollout of the digital euro is encountering fresh obstacles in the European Parliament, as the lead rapporteur, Fernando Navarrete Rojas of the People’s Party (PP), has aligned with far-right groups, creating a roadblock for a consensus on the draft legislation. This situation leaves shadow rapporteurs struggling to secure a workable majority.

Compromised Scope and Offline-Only Model

A recent compromise text reveals that Navarrete is advocating for a significantly narrowed scope of the project, diverging from the European Commission’s original plan. While the Commission proposed a digital euro usable both online and offline, Navarrete is pushing for an offline-only model. This shift fundamentally alters the envisioned functionality of the digital currency.

Navarrete’s Role and Parliamentary Dynamics

As rapporteur, Navarrete is responsible for guiding the legislative text and fostering agreement among political groups. However, his current stance has created a legislative deadlock. The European Parliament had previously signaled broad support for a digital euro, demonstrated by the adoption of pro-digital euro amendments on February 10, 2026, despite opposition from some centrist and far-right MEPs.

Internal Divisions within the EPP

The European People’s Party (EPP) itself is divided on the issue. The German delegation strongly supports the digital euro, responding to pressure from Berlin. German Vice-Chancellor Lars Klingbeil recently stated that opposition to the digital euro is detrimental to Europe’s progress. Fernando Navarrete Rojas is a member of the EPP.

Impasse and Delayed Vote

Sources familiar with the negotiations indicate that the amendments proposed by Navarrete are unacceptable to groups supporting the Commission’s plan. This impasse was evident during a meeting on Thursday, where lawmakers acknowledged the lack of progress, stating “the text is going nowhere.” Another meeting is scheduled for March 10, 2026, but a vote currently planned for May is expected to be postponed.

EU Council Agreement and Next Steps

EU countries have already reached an agreement on their position within the Council. Without a mandate from the Parliament, the legislation cannot proceed to the next stage.

The Digital Euro: A Response to US Payment Giants

The digital euro has gained political significance amid growing economic tensions between the EU and the US, particularly concerning Europe’s reliance on American payment networks. Visa and Mastercard, both US-based, currently dominate card payments in Europe, accounting for 61% of card payments in the EU and nearly all cross-border card payments as of 2025, according to European Central Bank data. Navarrete Rojas is a Spanish MEP representing the Partido Popular.

Benefits and Concerns

The proposed digital euro aims to provide citizens with direct access to digital central bank money, supplementing banknotes and existing commercial bank payment services. Supporters emphasize the potential for a sovereign and secure digital payment system. Critics, however, argue that the current compromise text risks undermining the core vision of the project.

Laura Casonato, head of policy at Positive Money Europe, expressed concerns about the compromise text, stating, “This first taste of a compromise from Mr. Navarrete sadly shines little light on any actual shift in his direction for the digital euro.” However, Casonato too acknowledged some positive elements, including language recognizing the need for a secure and sovereign digital payment system and clearer provisions for privacy and data security.

Fernando Navarrete Rojas Background

Fernando Francisco Navarrete Rojas was born on January 24, 1976 and is a Spanish economist and politician. He was elected to the European Parliament in 2024 as a member of the People’s Party. Prior to his role as an MEP, he served as chief of staff to the governor of the Bank of Spain, Pablo Hernández de Cos, and as director general of the Official Credit Institute.