Changes from report parliamentary committee draft to report parliamentary committee draft

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

▸8 unchanged paragraphs

on 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

(COM(2023)0368 – C90214/2023 – 2023/0211(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2023)0368),

– having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90214/2023),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Central Bank of 31 October 2023,

Changed– having regard to the opinion of the European Economic and Social Committee,Committee of 13 December 2023,

Changed– having regard to Rules 59 andRule 4160 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Economic and Monetary Affairs (A90000/2024),(A100000/2025),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

RemovedTitle 1: 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 / [This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout]

AddedRecital 2: (2) Regulation (EU) .../...+ establishes the digital euro and lays down rules concerning it, in particular as regards its issuance, legal tender status, distribution, use and essential features, with a view to adapting the euro to technological changes and to ensuring its use as a single currency. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)) and insert the number, date, title and OJ reference of that Regulation in the footnote.

Change 2

ChangedRecital 3: (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 Digitaldigital Euroeuro and therefore exercise their freedom to provide services in the Union. The provision of Digitaldigital Euroeuro 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 Digitaldigital Euroeuro 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 Digitaldigital Euroeuro walletaccount or had an offline digital euro device 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.area Paymentin servicesaccordance providerswith incorporatedany inspecific Memberlimitations Statesset whoseon currencythe isuse notof thedigital euro shouldpursuant alsoto beRegulation in.../...+ a. positionThe access to distributeand use of the Digitalautomatic Eurofunding toand anydefunding otherof naturalthe oronline legaldigital personseuro residingshould orbe establishedrestricted for visitors. Payment services providers incorporated in Member States whose currency is not the euro and in other countries of the European Economic Areashould oralso anybe thirdin countriesa subjectposition to the conditions laid down indistribute the Regulationdigital (EU)euro [pleaseto insertany referenceother –natural proposalor forlegal apersons Regulati…res…

Change 3

RemovedArticle 3 – paragraph 1 – point b: (b) natural and legal persons who opened a Digital Euro wallet 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;

AddedRecital 5: (5) The provision of digital euro payment services by payment services providers incorporated in Member States whose currency is not the euro, should be subject to the same supervisory standards as those applied to payment services providers incorporated in Member States whose currency is the euro. For that purpose, the relevant provisions of Directive (EU) 2015/2366 of the European Parliament and the Council5, Directive (EU) 2015/849 of the European parliament and of the Council6 should apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning provision of digital euro payment service by payment services providers established in Member States whose currency is not the euro. / 5 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj). / 6 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC…

AddedRecital 6: (6) Similarly, as in case of competent authorities of Member States whose currency is the euro under Regulation (EU) .../...+, the competent authorities responsible under Directive (EU) 2015/2366 for supervising the provision of payment services should also cooperate with the European Central Bank for the purposes of supervising the application of payment-related obligations laid down in Regulation (EU) .../...++ / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)). / ++ OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedRecital 7: (7) In accordance with Article (4), point (25), of Directive 2015/2366, funds mean banknotes and coins, scriptural money or electronic money. As a new form of central bank money with legal tender, the digital euro should be considered as funds under Directive 2015/2366 as replaced by Directive (EU) [please insert reference – proposal for a Directive on payment services and electronic money services in the internal market - COM/2023/366 final] which extends the definition of funds to all forms of central bank money issued for retail use. The same definition of funds should be included in Regulation (EU) 2021/1230 of the European Parliament and of the Council1a. / 1a Regulation (EU) 2021/1230 of the European Parliament and of the Council of 14 July 2021 on cross-border payments in the Union (OJ L 274, 30.7.2021, p. 20, ELI: http://data.europa.eu/eli/reg/2021/1230/oj).

AddedRecital 9: (9) The European Data Protection Supervisor and the European Data Protection Board were consulted in accordance with Article 42 of Regulation (EU) 2018/1725 and delivered a joint opinion on 17 October of 2023,

AddedArticle 1 – paragraph 1 – point c: (c) the specific obligations that original equipment manufacturers of mobile devices and providers of electronic communication services within the meaning of Article 2(1) Directive (EU) 2018/1972 of the European Parliament and of the Council1a established in Member States whose currency is not the euro shall apply in relation to the digital euro. / 1a Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 establishing the European Electronic Communications Code (OJ L 321, 17.12.2018, p. 36, ELI: http://data.europa.eu/eli/dir/2018/1972/oj).

AddedArticle 2 – paragraph 1 – point 1: 1. ‘digital euro’ means the digital euro as defined in Article 2, point 1 of Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 2 – paragraph 1 – point 3: 3. ‘digital euro payment service’ means digital euro payment service as defined in Article 2, point 8 Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 2 – paragraph 1 – point 5: 5. ‘visitor’ means a natural person as defined in Article 2, point 22, of Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 2 – paragraph 1 – point 6: 6. ‘Member State whose currency is not the euro’ means a Member State whose currency is not the euro as defined in Article 2, point 23, of Regulation (EU) .../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 2 – paragraph 1 – point 7: 7. ‘mobile device’ means a mobile device as defined in Article 2, point 31, of Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 3 – paragraph 1 – introductory part: 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 set out in Annex I to Regulation (EU) .../... + for offline digital euro and Annex II to that Regulation for online digital euro to: / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 3 – paragraph 1 – point d: (d) natural and legal persons residing or established in Member States whose currency is not the euro, subject to the conditions laid down in Article 18 of the Regulation (EU).../...+; / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 3 – paragraph 1 – point e: (e) natural and legal persons residing or established in third countries, including territories under a monetary agreement with the European Union, subject to the conditions laid down in Articles 19 and 20 of the Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 3 – paragraph 1 – subparagraph 1 a (new): The European Central Bank may restrict the access to and use of the online digital euro for the digital euro users referred to in the first subparagraph, points (b) and (c) of this Article subject to the conditions laid down in Article 16 of the Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 3 – paragraph 1 – subparagraph 1 b (new): The access to and use of the automatic funding and defunding of the online digital euro shall be restricted for digital euro users referred to in the first subparagraph, point (c).

AddedArticle 4 – paragraph 1 – subparagraph 1: The requirements laid down in Article 13, Article 14(1), Chapter V, Article 18, Chapter VII, Chapter VIII and Chapter IX of Regulation (EU).../...+, 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. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../.... (2023/0212(COD)).

AddedArticle 4 – paragraph 1 – subparagraph 2: The requirement laid down in Article 33 of Regulation (EU) .../...+ shall be applicable to original equipment manufacturers of mobile devices and providers of electronic communication services within the meaning of Article 2(1) Directive (EU) 2018/1972 established in Member States whose currency is not the euro. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 4 – paragraph 3: 3. In accordance with Article 2(10) of Regulation (EU) 2021/1230, the provisions of that Regulation shall apply to payment transactions in digital euro.

AddedArticle 4 – paragraph 4: 4. Without prejudice to Articles 37 of Regulation .../...+, Directive (EU) 2015/849 and Regulation (EU) 2023/1113 of the European Parliament and of the Council2a shall apply with respect to the digital euro. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)). / 2a Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (OJ L 150, 9.6.2023, p. 1, ELI: http://data.europa.eu/eli/reg/2023/1113/oj).

AddedArticle 5 – paragraph 1: 1. Directive (EU) 2015/2366 of the European Parliament and of the Council shall apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning the activities of payment service providers established in Member States whose currency is not the euro in relation to the digital euro for the purposes of applying this Regulation and the obligations referred to in Chapters IV, V, VI and VII of Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 5 – paragraph 2: 2. Directive (EU) 2015/849 shall apply to the supervision by competent authorities and the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States concerning the activities of payment service providers incorporated in Member States whose currency is not the euro established in relation to the digital euro for the purpose of applying this Regulation and the obligations contained in Chapter IX of Regulation (EU) .../...+. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedArticle 6 – paragraph 1: For the purposes of supervising the application of Chapters IV, V and VII of the Regulation (EU) .../...+ the competent authorities referred to in Article 4(1) shall, where relevant, cooperate with the European Central Bank. / + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS .../... (2023/0212(COD)).

AddedRegulation (EU) 2021/1230

AddedArticle 7 – paragraph 1, Article 2 – point 10: In Article 2 of Regulation (EU) 2021/1230 of the European Parliament and of the Council, point 10 is replaced by the following: “‘funds’ means central bank money issued for retail use, scriptural money or electronic money.