Frankfurt: The digital euro cleared its first big parliamentary hurdle when the Economic and Monetary Affairs Committee backed its position on 23 June 2026 by 43 votes to 14, with one abstention. The vote opens the way for talks with the Council, and PPC Land reports that trilogues are expected after the July plenary session with no fixed deadline.

The committee adopted the text in procedure 2023/0212(COD). Rapporteur Fernando Navarrete Rojas, a Spanish member of the EPP group, said the digital euro “will complement cash, never replace it”. He took over the file in December 2024 replacing Stefan Berger.

Lawmakers wrote limits into the design. The Commission would set a holding ceiling on the recommendation of the European Central Bank and review it at least every two years, while Parliament keeps full decision-making powers in that review. Businesses could not hold digital euros, except to accumulate incoming payments for up to 24 hours.

The timeline looks long. After authorisation, the project needs a rollout period of at least 24 months, and the ECB must finish its rulebook, build the infrastructure, run pilots and settle liability rules before issuance. PYMNTS reports that the ECB targets a 2029 debut, which assumes the legislation passes without further delay.

Two companion files moved in the same package. A proposal on payment service providers in non-euro member states passed 43 to 9, with six abstentions, and a proposal on the legal tender of euro banknotes and coins passed 46 to 4, with eight abstentions. Together, the three texts show the digital euro advancing alongside cash protection.

Civil society welcomed the outcome. Peter Norwood of Finance Watch said Parliament had found a majority for a digital euro “that is more than another payment app”. Positive Money Europe earlier pointed to a clear parliamentary majority for an inclusive form of public money in February 2026.

The next test comes in the Council, where governments will bargain over the holding cap, fees and offline functions. The European Central Bank would issue the currency, and lawmakers want its operational role kept apart from monetary policy.

Whatever the final deal looks like, the new currency will only reach shops and wallets after trilogues conclude and the ECB completes its preparation. For now, the committee vote gives negotiators a mandate and gives banks and retailers a clearer picture of the limits ahead. Anyone planning payments strategy for 2027 and beyond should follow how the digital euro talks treat the cap and the fee model.