What changed

ORDINARY LEGISLATIVE procedure

SHORT JUSTIFICATION

Follow up to the European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 910/2014 as regards establishing a framework for a European Digital Identity

In June 2021, as part of the “Europe Fit for the Digital Age” package, the European Commission proposed a Regulation amending Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market (eIDAS Regulation). This new proposal for an amending Regulation on a framework for a European Digital Identity is an important step towards European integration and a very significant contribution to the prosperity and development of the EU Digital Single Market. Enabling our citizens to prove their identity so they can access online public administrations, private services or simply to attest a personal identity attribute, such as medical certificates, professional qualifications or driving licences, means that we are bridging the digital gap between Member States and finally getting rid of the digital identity “border”. Nevertheless, this draft opinion aims at improving the content of this proposal in light of the digital transition.

1. Rapporteur: Romana JERKOVIĆ (S&D / HR)

The COVID-19 pandemic has had a unique catalysing effect on the digital transition. As a consequence, the demand for means to identify and authenticate online, as well as to digitally exchange information related to our identity with high security and privacy standards, has increased across Europe. At present, eIDAS is the EU’s only cross-border framework for trusted electronic identification (eID) of natural and legal persons, and trust services. The new European Digital Identity Wallets, a key aspect of the proposal, will enable all European citizens, consumers and businesses, to securely access services online without having to use identification means currently offered by big platforms for example or unnecessarily share personal data. With this solution, users will have full control of the data they share, ensuring a high level of consumer protection The proposed Regulation also aspires to provide effective access to trusted and secure digital identity solutions with cross-border operability in order to address the demands of citizens and the market more broadly. Public and private services alike will be able to safely rely on digital identity solutions, again crucially across borders within the Union.

2. Reference numbers: 2021/0136 (COD) / A9-0038/2023 / P9_TA(2024)0117

As rapporteur for the IMCO Committee, I regard the implementation of a cross-border legal framework for trusted digital identities to be an essential tool to strengthen the European Single Market and consumer protection, in an increasingly digital worldwide economy. The current situation with weak or non-existent digital verification represents a considerable burden both in terms of cost and bureaucracy - on average, businesses in Europe spend six to seven weeks verifying the identity of potential business partners or clients before starting to conduct business. This is compounded by the differing operational and regulatory requirements across Member States.

3. Date of adoption of the resolution: 29 February 2024

This revision presents an opportunity to bring about a situation in which European citizens and consumers, already often working cross-border on a daily basis, can use medical prescriptions in neighbouring countries to buy medicines or easily rent a car; move around for work and easily register in a new country without unnecessary administrative burden; and, particularly in the case of our elderly citizens, feel at ease knowing they can prove their identity in any European hospital. As rapporteur, I firmly believe that these goals can be facilitated with a cross-border eID, which would effectively take on the role of a passport for the digital world. This is the time to keep our ambitions high, and to ensure the swift and effective implementation of a user-friendly service that will empower our citizens by giving them full control of the data they share, when accessing both public and private online services in the EU.

4. Legal basis: Article 114 of the Treaty on the Functioning of the European Union

AMENDMENTS

5. Competent Parliamentary Committee: Committee on Industry, Research and Energy (ITRE)

The Committee on the Internal Market and Consumer Protection calls on the Committee on Industry, Research and Energy, as the committee responsible, to take into account the following amendments:

6. Commission's position: accepts all amendments. The Commission presented the following statements:

Amendment 1

Statement by the Commission on Article 45 on the occasion of the adoption of Regulation

Proposal for a regulation

The Commission welcomes the agreement reached, which, in its view, clarifies that web browsers are required to ensure support and interoperability for the qualified website authentication certificates (QWACs) for the sole purpose of displaying the identity data of the owner of the website in a user-friendly manner. The Commission understands this obligation as not prejudging the methods used to display such identity data.

Recital 9

The Commission welcomes the agreement reached, which, in its view, clarifies that the requirement for the web browsers to recognise QWACs does not restrict browsers own security policies and that Article 45, as proposed, leaves it up to the web browsers to preserve and apply their own procedures and criteria in order to maintain and preserve the privacy of online communications using encryption and other proven methods. The Commission understands draft Article 45 as not imposing obligations or restrictions on how web browsers establish encrypted connections with websites or authenticate the cryptographic keys used when establishing those connections.

Or. en

The Commission recalls that, in line with point 28 of the Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016, the Commission will make use of expert groups, consult targeted stakeholders and carry out public consultations, as appropriate.

Justification

Statement by the Commission on unobservability on the occasion of the adoption of Regulation

To take into account also software-based technologies. Software-based security not relying on a specific hardware or a specific telecom provider could enable significantly shorter supply chains as well as better digital sovereignty of the EU. This kind of technology also enables more flexible mitigation of any usability flaw or security risk, since there is no need to replace any physical component.

The Commission welcomes the agreement reached, which in its view, confirms that this amending Regulation does not allow for the processing of personal data contained in or arising from the use of the European Digital Identity Wallet by the Wallet providers for other purposes than delivering wallet services.

Amendment 2

The Commission also welcomes the inclusion of the concept of unobservability in Recital (11c) of the draft amending Regulation, which should prevent wallet providers from collecting and seeing the details of user’s day-to-day transactions. The Commission is of the view that this concept means that there should not be correlation of data across different services for the purposes of user tracking or tracing or for determining, analysing and predicting personal behaviour, interests or habits.

Proposal for a regulation

At the same time, the Commission acknowledges that, in full compliance with Regulation (EU) 2016/679, the providers of European Digital Identity Wallets may access certain categories of personal data with the user’s explicit consent, such as in order to ensure continuity in the provision of wallet services or to protect users from disruptions in their provision. That data should be limited to what is necessary for each specific purpose.

Article 1 – paragraph 1 – point 1

Regulation (EU) 910/2014

Article 1 – paragraph 1 – point a

Or. en

Justification

This is a linguistic remark for the text to be coherent with the specified provisions in this article.

Amendment 3

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 910/2014

Article 6a – paragraph 1

Or. en

Justification

To highlight the impact of the Digital Identity Wallets on the Digital Single Market, while underscoring consumers’ control over these services.

Amendment 4

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 910/2014

Article 6a – paragraph 3 – point b a (new)

Or. en

Justification

This addition emphasizes the importance for users to securely use their identities when utilizing Digital Identity Wallets cross-border and cross-sector.

Amendment 5

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 910/2014

Article 6a – paragraph 6

Or. en

Justification

To stress that the Digital Identity Wallets are free of charge to all users and without discrimination, Article 6 (a) paragraph 6 has been split into paragraphs 6 and 6a.

Amendment 6

Proposal for a regulation

Article 1 – paragraph 1 – point 7

Regulation (EU) 910/2014

Article 6a – paragraph 6 a (new)

Or. en

Justification

To stress that the Digital Identity Wallets are free of charge to all users and without discrimination. Article 6 (a) paragraph 6 has been split into paragraphs 6 and 6a.

Amendment 7

Proposal for a regulation

Article 1 – paragraph 1 – point 9

Regulation (EU) 910/2014

Article 7 – paragraph 1 – introductory part

Or. en

Justification

It is necessary to clarify that the list of conditions is cumulative, in line with the introductory sentence of Article 7, paragraph 1, of the eIDAS Regulation.

Amendment 8

Proposal for a regulation

Article 1 – paragraph 1 – point 10

Regulation (EU) 910/2014

Article 9 – paragraph 2

Or. en

Justification

It is necessary to ensure a swift publication of the notified national eID schemes by the Commission.

Amendment 9

Proposal for a regulation

Article 1 – paragraph 1 – point 16

Regulation (EU) 910/2014

Article 12b – paragraph 2

Or. en

Justification

To include professional qualifications not covered by education.

Amendment 10

Proposal for a regulation

Article 1 – paragraph 1 – point 16

Regulation (EU) 910/2014

Article 12c – paragraph 1 – subparagraph 1 – introductory part

Or. en

Justification

To harmonise the text.

Amendment 11

Proposal for a regulation

Article 1 – paragraph 1 – point 38

Regulation (EU) 910/2014

Article 45 – paragraph 1

Or. en

Justification

Linguistic improvement.

ANNEX: LIST OF ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The following list is drawn up on a purely voluntary basis under the exclusive responsibility of the rapporteur. The rapporteur has received input from the following entities or persons in the preparation of the draft opinion: