Provision of digital euro services by payment services providers incorporated in Member States whose currency is not the euro and amending Regulation (EU) 2021/1230 of the European Parliament and the Council

AM_Com_LegReport

Amendment 26

Nikos Papandreou

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) The Commission emphasised in the Digital Finance and Retail Payment Strategies4 of September 2020 that a digital euro, as a retail central bank digital currency, would act as a catalyst for innovation in payments, finance and commerce in the context of ongoing efforts to reduce the fragmentation of the EU retail payments market.

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4 Communication from the Commission to the European Parliament, the Council and the Committee of the Regions on a Digital Finance Strategy for the EU (COM/2020/591 final)

Or. en

Amendment 27

Nikos Papandreou

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

(1 a) Member States are in principle obliged to introduce the euro as their currency once they fulfil the convergence criteria.

Or. en

Amendment 28

Nikos Papandreou

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3) It is essential to ensure that all payment services providers, whether incorporated in Member States whose currency is the euro or in Member States whose currency is not the euro, may distribute the digital euro and therefore exercise their freedom to provide services in the Union. The provision of digital euro payment service by all payment services providers would contribute to a high level of innovation, facilitate payments and increase competition across the Union and is necessary to safeguard the integrity of the single market. All payment services providers incorporated in the Union should therefore be in a position to distribute digital euro payment services under the same conditions to natural or legal persons residing or established in the Member States whose currency is the euro, to natural or legal persons who opened a digital euro account at the time they resided or were established in the Member States whose currency is the euro, but no longer reside or are established in such Member States, and to visitors in the euro area. Payment services providers incorporated in Member States whose currency is not the euro should also be in a position to distribute the digital euro to any other natural or legal persons residing or established in Member States whose currency is not the euro and in other countries of the European Economic Area or any third countries subject to the conditions laid down in the Regulation (EU) [please insert reference – proposal for a Regulation of the European Parliament and the Council on the establishment of the digital euro – COM(2023) 369 final].

(3) It is essential to ensure that, while payment services providers in Member States whose currency is the euro are mandated to distribute the digital euro, PSPs in Member States whose currency is not the euro, may also distribute it and therefore exercise their freedom to provide services in the Union. The provision of digital euro payment service by all payment services providers would contribute to a high level of innovation, facilitate payments and increase competition across the Union and is necessary to safeguard the integrity of the single market. All payment services providers incorporated in the Union should therefore be in a position to distribute digital euro payment services under the same conditions to natural or legal persons residing or established in the Member States whose currency is the euro, to natural or legal persons who opened a digital euro account at the time they resided or were established in the Member States whose currency is the euro, but no longer reside or are established in such Member States, and to visitors in the euro area. Payment services providers incorporated in Member States whose currency is not the euro should also be in a position to distribute the digital euro to any other natural or legal persons residing or established in Member States whose currency is not the euro and in other countries of the European Economic Area or any third countries subject to the conditions laid down in the Regulation (EU) [please insert reference – proposal for a Regulation of the European Parliament and the Council on the establishment of the digital euro – COM(2023) 369 final].

Or. en

Amendment 29

Pasquale Tridico

Proposal for a regulation

Recital 3 a (new)

Text proposed by the Commission

Amendment

(3 a) Payment service providers incorporated in Member States whose currency is not the euro should provide digital euro payment services in a non-discriminatory manner and under conditions that are comparable to those applicable under Union law to payment service providers incorporated in Member States whose currency is the euro, including as regards access, functionality and user protection, in order to prevent fragmentation of the internal market and unequal treatment of digital euro users.

Or. en

Amendment 30

Pasquale Tridico

Proposal for a regulation

Recital 3 b (new)

Text proposed by the Commission

Amendment

(3 b) The digital euro constitutes a single form of central bank money. References in this Regulation to the provision of digital euro payment services should therefore be understood as covering both online and offline functionalities as complementary modes of use of the same instrument, in order to preserve the unity of the single currency.

Or. en

Amendment 31

Marlena Maląg

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment services providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment services providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives. The Commission and the European Central Bank should also monitor the cross-border use of the digital euro and regularly assess whether it risks giving rise to phenomena of informal or de facto euroization in Member States whose currency is not the euro. Where appropriate, they should propose suitable mitigating measures in full respect of the exclusive competence of those Member States to decide on the adoption of the euro.

Or. en

Justification

Safeguarding the sovereignty of Member States in matters of currency use.

Amendment 32

Stephen Nikola Bartulica, Marlena Maląg, Geadis Geadi, Nora Junco García, Diego Solier

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment services providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment services providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives. The Commission and the European Central Bank should therefore regularly monitor whether the cross-border use of the digital euro risks giving rise to phenomena of informal or de facto euroization in Member States whose currency is not the euro and, where appropriate, propose suitable mitigating measures in full respect of the democratic choices of the citizens and parliaments of those Member States.

Or. en

Justification

This amendment safeguards the sovereign right of Member States whose currency is not the euro to decide on euro adoption, as enshrined in the Treaties. By mandating monitoring of potential informal euroization risks from cross-border digital euro use, it prevents unintended currency substitution without democratic processes, ensuring full respect for national parliaments and citizens.

Amendment 33

Marlena Maląg

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment services providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(8) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States as rules applicable to payment services providers should be the same regardless of whether they are incorporated in a Member State whose currency is the euro or not, but can rather, by reason of the scale or effects of the action to ensure the integrity of the single market, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives. This Regulation respects the principle of subsidiarity by ensuring that non-euro Member States retain full competence to regulate domestic currency use and may impose additional restrictions on digital euro promotion within their territory to prevent informal euroization that could undermine democratic decisions on EMU accession under Article 123 TFEU.

Or. en

Justification

Safeguarding the sovereignty of Member States in matters of currency use.

Amendment 34

Nikos Papandreou

Proposal for a regulation

Article 3 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

Within the framework of Directive (EU) 2015/2366, payment services providers incorporated in the Member States whose currency is not the euro may provide digital euro payment services to:

Within the framework of Directive (EU) 2015/2366, payment services providers incorporated in the Member States whose currency is not the euro may in full accordance with the framework laid down in the Regulation (EU) [please insert reference – proposal for a Regulation of the European Parliament and the Council on the establishment of the digital euro – COM(2023) 369 final] provide digital euro payment services to:

Or. en

Amendment 35

Hanna Gronkiewicz-Waltz, Siegfried Mureşan, Arba Kokalari, Janusz Lewandowski

Proposal for a regulation

Article 3 – paragraph 1 – subparagraph 1 a (new)

Text proposed by the Commission

Amendment

Within the framework of Directive 2015/2366, payment service providers may provide merchants residing or established in a Member State whose currency is not the euro or in a third country digital euro payment services allowing them to receive digital euro payment transactions from persons belonging to the categories set out in the first subparagraph, even if the conditions referred to in Articles 18 to 20 of Regulation (EU) No X on the establishment of the digital euro have not been met, subject to the national legislation of that Member State or third country.

Or. en

Justification

The amendment of Article 3 of the proposal for a regulation of the European Parliament and of the Council on the provision of digital euro services by payment services providers incorporated in Member States whose currency is not the euro and amending Regulation (EU) 2021/1230 of the European Parliament and the Council aims further to allow the non-euro area payment service providers to provide digital euro payment services also to the merchants residing or established in a Member State whose currency is not the euro.

Amendment 36

Tomáš Kubín, Enikő Győri, Jaroslava Pokorná Jermanová

Proposal for a regulation

Article 3 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

Within the framework of Directive 2015/2366, payment service providers may provide merchants residing or established in a Member State whose currency is not the euro or in a third country digital euro payment services allowing them to receive digital euro payment transactions from persons belonging to the categories set out in the first subparagraph, even if the conditions referred to in Articles 18 to 20 of Regulation (EU) No X on the establishment of the digital euro have not been met, subject to the national legislation of that Member State or third country.

Or. en

Amendment 37

Marlena Maląg

Proposal for a regulation

Article 3 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

When providing digital euro payment services to visitors or non-residents under points (c), (d), and (e), payment service providers shall:

(a) obtain explicit consent confirming the user's awareness that the digital euro does not substitute national currencies in non-euro Member States;

(b) display prominent disclaimers in the user's national language promoting the use of the home currency for domestic transactions, in coordination with the home competent authority; and

(c) limit initial onboarding to temporary wallets with a maximum holding of EURO 350 aligned with tourist cash limits under Regulation (EU) 2018/1672.

Or. en

Justification

It prevents distortion of perception through habitual use of the digital euro.

Amendment 38

Marlena Maląg

Proposal for a regulation

Article 3 a (new)

Text proposed by the Commission

Amendment

Article 3a

1. Payment service providers shall annually report to their home competent authority on the volume and geographic origin of digital euro transactions by non-residents, including any observed shifts in user preferences toward euro-denominated payments.

2. Home competent authorities shall assess potential impacts on national currency usage and report to the Commission and ECB every three years, with recommendations for opt-out safeguards if informal euroization exceeds 10% of cross-border retail payments in the home Member State.

Or. en

Justification

Introduces transparency without banning services, allowing democratic responses (e.g., parliamentary debates).

Amendment 39

Hanna Gronkiewicz-Waltz, Siegfried Mureşan, Arba Kokalari, Janusz Lewandowski

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The requirements laid down in Article 13, Article 14(1), Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) No X on the establishment of the digital euro, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation.

The requirements laid down in Article 13, Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) No X on the establishment of the digital euro, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation.

Or. en

Justification

The reference to Article 14(1) of the proposal for a Regulation on the establishment of the digital euro (DER) may inadvertently extend the obligation to provide basic digital euro payment services to credit institutions established in non-euro area Member States. Such an interpretation would be inconsistent with the principle of proportionality, since the digital euro does not constitute legal tender outside the euro area and therefore remains only an optional means of payment in those Member States. Imposing mandatory distribution obligations on non-euro area institutions—even when triggered by a single client residing or established in the euro area—would create a disproportionate regulatory burden.This assessment aligns with point 9.6 of the ECB Opinion of 31 October 2023 (CON/2023/34), which similarly notes that requiring non-euro area credit institutions to distribute the digital euro may raise proportionality concerns.To address this issue, it is proposed to delete the reference to Article 14(1) DER from Article 4(1) and to make the provision of digital euro payment services by payment service providers in non-euro area Member States optional.

Amendment 40

Enikő Győri, Tomáš Kubín, Jaroslava Pokorná Jermanová

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The requirements laid down in Article 13, Article 14(1), Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) No X on the establishment of the digital euro, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation.

The requirements laid down in Article 13, Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) No X on the establishment of the digital euro, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation.

Or. en

Justification

In order to ensure proportionality for Member States whose currency is not the euro, it is proposed to delete the reference to Article 14(1) DER from Article 4(1) and make the provision of digital euro payment services optional for the payment service providers incorporated within the territory of Member States whose currency is not the euro.

Amendment 41

Marlena Maląg

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

The requirements laid down in Article 13, Article 14(1), Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) No X on the establishment of the digital euro, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation.

The requirements laid down in Article 13, Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU) No X on the establishment of the digital euro, shall be applicable to payment service providers incorporated within the territory of Member States whose currency is not the euro that provide digital euro payment services in accordance with Article 1 of this Regulation.

Or. en

Justification

Paragraph 1 of Article 14 of the DER, which concerns "access to the digital euro in Member States whose currency is the euro," obliges credit institutions, at the request of their customers who are natural or legal persons residing or established in the euro area, to provide all basic digital payment services in euro to them. By including this reference in the Regulation on digital euro services provided by providers in Member States outside the euro area, this obligation can be understood as also extending to credit institutions established in such Member States. The burden on credit institutions outside the euro area is disproportionate, as they would be obliged to offer basic digital euro services to customers residing or established in the euro area, even if only one such customer requests the provision of these services.