Germany’s Vice-Chancellor and Finance Minister Lars Klingbeil has sharply criticised delays to the digital euro legislation, warning that failure to advance the project now is “harming Europe itself.” His remarks, made ahead of a meeting of euro area finance ministers in Brussels, underline growing political pressure to move the European Central Bank’s digital currency project into its next phase.
The legislative proposal for a digital euro is currently stalled in the European Parliament, where MEPs have struggled to agree on a common position. Without parliamentary approval, negotiations with the Council of the EU cannot begin, potentially pushing back the ECB’s wider decision-making timetable.
“All I can say is that anyone who, in this situation, has not understood that it is now essential to advance the digital euro as quickly as possible is not serving Europe, but harming it,” Klingbeil told journalists.
His unusually direct language reflects frustration in Berlin that political divisions are slowing what the German government sees as a strategic necessity for the euro area.
Parliamentary Divisions Over Scope
The blockage stems largely from disagreements within the European People’s Party, the Parliament’s largest political group. Spanish centre-right MEP Fernando Navarrete, who is leading work on the file, has proposed redesigning the digital euro in a way that would significantly reduce its scope compared to the original European Commission proposal.
The EPP itself is divided. The German delegation is actively supportive of advancing the project, while other members favour narrowing its ambition. If Parliament fails to adopt a position, the legislation cannot proceed to trilogue negotiations with the Commission and Council.
A plenary vote is currently expected in May.
A Public Alternative in a Private Payments Market
Under the Commission’s proposal, the digital euro would be an electronic form of central bank money issued by the European Central Bank. It would complement cash and commercial bank deposits, giving citizens access to digital public money through a wallet usable both online and offline.
Crucially, payments would not be trackable under the proposed design, addressing privacy concerns that have shaped much of the political debate.
Klingbeil emphasised that cash would remain in circulation. The digital euro, he argued, is not about replacing physical money but strengthening Europe’s monetary sovereignty.
The strategic dimension has gained urgency amid broader economic tensions between the EU and the United States. Today, most European card payments are processed by US-based Visa and Mastercard. According to European Central Bank data from 2025, the two companies account for 61 percent of card payments in Europe and nearly 100 percent of cross-border ones.
Peter Norwood, senior research and advocacy officer at Finance Watch, told Euronews that this dominance gives foreign actors “meaningful leverage over the day-to-day functioning of the European economy.” A properly designed digital euro, he argued, would provide a publicly backed digital payment option that keeps costs down, protects privacy and ensures European control over critical infrastructure.
However, under Navarrete’s proposed redesign, the digital euro would not function as a direct alternative to Visa and Mastercard, potentially weakening one of its central policy justifications.
What Happens Next
The coming months will be decisive. If Parliament reaches agreement in May, negotiations between EU institutions can begin, moving the project closer to a final legislative framework.
For the ECB, which is currently in its preparation phase, political clarity is essential before any formal decision to issue a digital euro. Continued delays risk complicating that timeline and raising broader questions about Europe’s capacity to deliver on strategic financial autonomy.
At stake is more than a new payment instrument. The debate now cuts to the core of how Europe wants its money to function in an increasingly digital and geopolitically contested world.
Related: European Parliament Backs Online and Offline Digital Euro in Key Vote