European Union finance ministers have taken stock of progress on the digital euro legislation, signalling that the Council is moving closer to a common negotiating position on the project. The update came during the Economic and Financial Affairs Council meeting held in Brussels on 12 December 2025.
According to the Council, discussions on the single currency legislative package are advancing steadily. This package includes both the regulation establishing the digital euro and parallel rules clarifying the legal tender status of euro cash. Officials said the aim is to finalise the Council’s position before the end of the year, allowing interinstitutional talks with the European Parliament to begin.
The digital euro regulation would provide the legal basis for a retail central bank digital currency issued by the Eurosystem. The project is intended to ensure that citizens and businesses retain access to public money in digital form, even as cash usage declines and private payment solutions gain market share.
Council Focuses on Legal Framework
During the ECOFIN meeting, ministers did not reopen design debates on the technical features of the digital euro. Instead, the focus remained on legislative progress, governance, and the division of responsibilities between EU institutions and the Eurosystem.
Council officials noted that significant work has already been completed at technical level, narrowing differences between member states. Remaining issues include the role of intermediaries such as banks, safeguards for financial stability, and the relationship between the digital euro and existing payment instruments.
The update suggests growing political alignment among member states after months of negotiations. Several governments had previously expressed concerns about costs, potential impacts on bank funding, and public acceptance. The current tone indicates a shared interest in reaching a workable compromise.
Link to Broader Euro Policy
The digital euro file is being negotiated alongside legislation on the legal tender status of cash. EU policymakers have repeatedly stressed that the digital euro is not intended to replace banknotes and coins, but to complement them.
By advancing both files together, the Council aims to reinforce trust in the euro in all its forms. Officials see the approach as part of a broader effort to modernise the monetary framework while preserving financial inclusion and consumer choice.
The ECOFIN discussion also took place against a wider agenda focused on competitiveness, financial regulation simplification, and economic governance. While the digital euro was not the central item of the meeting, its inclusion in the progress report highlights its strategic importance for the EU.
If the Council agrees on a mandate in the coming weeks, formal negotiations with the European Parliament could start in early 2026. That would mark a decisive step toward determining whether and how a digital euro is ultimately issued.