Finance ministers met in Copenhagen this week with European Central Bank President Christine Lagarde and EU Commissioner Valdis Dombrovskis, hashing out terms that would give ministers greater influence over the project. Under the emerging deal, governments would have a say not only on whether the digital euro launches but also on limits to individual holdings — a safeguard aimed at preventing capital flight from commercial banks.

Lagarde described the project as far more than a payments experiment. “The digital euro is a symbol of Europe’s ability to build its own cross-border financial infrastructure,” she said, underscoring its role as a counterweight to U.S.-dominated systems like Visa and Mastercard.

Even with political momentum building, the road ahead remains long. Parliament must still pass enabling legislation, with heated debate expected later this year. The ECB has targeted mid-2026 for completing the legal framework, after which full issuance could take several more years.

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Skepticism persists within the bloc. Spanish lawmaker Fernando Navarrete Rojas, who is leading Parliament’s work on the file, has circulated a detailed critique questioning whether a digital euro is necessary at all. He points to concerns about financial stability, privacy, fraud prevention, and compliance burdens as reasons to pause.

The clash highlights the stakes: supporters frame the digital euro as Europe’s chance to control its financial future, while critics warn of rushing into a solution in search of a problem. Whether the project ultimately clears these hurdles could determine how Europe competes in the next era of global payments.

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