EU Ministers Send Clear Message to ECB and Commission: Digital Euro Must Put Citizens First

Eurogroup ministers met on March 13, 2023 to discuss the future of the digital euro. The meeting was based on a background note prepared by the Secretariat, outlining several key policy objectives, including strengthening European sovereignty, safeguarding the monetary anchor of the euro, promoting financial inclusion, and ensuring operational resilience.

President Donohoe added two more key issues in his subsequent press statement. He emphasized the importance of putting more emphasis on citizens and consumer preferences as well as ensuring the digital euro has a solid democratic and political basis. This reflects a growing focus among Eurogroup ministers on making the digital euro a project for the people, not a top-down political project.

The background note also discussed the consequences of granting the digital euro legal tender status, which would play a crucial role in its penetration as a means of payment. This would mean the digital euro would be accepted at 100% of its face value, have a legal obligation to be accepted, and be considered a discharge of payment obligations.

In conclusion, the Eurogroup meeting marked a significant step in the development of the digital euro. The discussions emphasized the importance of considering the preferences and needs of citizens, as well as ensuring a solid democratic and political foundation. As the European Commission prepares to publish a proposal by May 2023 and the ECB reviews the outcome of the investigation phase in autumn 2023, the Eurogroup will continue its work to ensure the digital euro is fully aligned with the needs and preferences of EU citizens.