Changes from report parliamentary committee draft to plenary report

RemovedArticle 17 – paragraph 3: 3. The Commission, in collaboration with the European Central Bank, shall regularly monitor the information on the fees or charges requested for comparable means of payment as well as the merchant service charges levied on digital euro transactions and publish periodically the amounts resulting from that monitoring with an explanatory report.

AddedAfter the authorisation of the issuance referred to in the first subparagraph, the European Central Bank shall publicly announce the envisaged date of the first issuance of the digital euro. The announcement of the envisaged date of issuance shall take place at least two years prior to that envisaged date.

RemovedArticle 17 – paragraph 4: 4. The Commission may require payment service providers to provide all information necessary for the application of this Article and to verify compliance with it. Any information requested shall be sent by payment service providers within the time limit set by the Commission. The Commission may require that such information is certified by an independent auditor

Added2. The digital euro shall be a direct liability on the balance sheet of the European Central Bank or of national central banks towards digital euro users. Digital euro holdings shall be the exclusive property of digital euro users and not of the payment service providers providing digital euro services, nor of any other intermediary.

RemovedArticle 17 – paragraph 5: deleted / (deleted) / (deleted) / (deleted) / (deleted)

Added2 a. The European Central Bank shall conduct all preparatory work, technical and organisational arrangements and testing for the issuance of the digital euro, in particular:

RemovedArticle 17 – paragraph 6: 6. The merchant service charge shall incorporate all the fees and charges charged to the merchant in relation with the provision of acquiring services and, regardless of their price structure, be expressed as a percentage of the total monetary amount transacted in a given period of time. Payment service providers shall not charge merchants for the automatic defunding of the digital euro, including digital euro payment transactions referred to in Article 13(4) when the defunding goes to a non-digital euro payment account held with the same payment service provider. Payment service providers shall not charge merchants for the front-end services included in Annexes II and IIa.

Added(a) the completion of the digital euro scheme rulebook;

RemovedArticle 17 – paragraph 7: 7. No inter-payment service providers fee shall apply to offline digital euro transactions or to the funding and defunding of online digital euro accounts from or to a non-digital euro payment account held with the same payment service provider.

Added(b) the necessary infrastructure development and deployment;

RemovedArticle 17 a (new): Article 17a / Review clause on the fees and charges for the provision of digital euro payment services / 1. By 10 years from the issuance of the digital euro, provided that sufficient and reliable cost data for digital euro transactions are available in an accurate, harmonised and verifiable manner, and that the average unit costs and volume of total digital euro transactions have stabilised after the consumers’ adoption period, the Commission, after consulting the European Central Bank, shall carry out a review and submit a report to the European Parliament and to the Council to evaluate whether the compensation model referred to in Article 17 should be replaced with a cost-based compensation model. / 2. If a cost-based compensation model is deemed to provide lower costs for merchants, greater efficiency and competition in the payment markets and avoids cross-subsidies among different merchants’ business models or within the European payments ecosystem, the Commission shall prepare a legislative proposal for a new model of fees and charges for the provision of digital euro payment services. / 3. The report referred to in paragraph 1 of this Article shall include a comparison between the fees and charges that could result a cost-based compensation model, including a reasonable margin of profit, and the data collected pursuant to Article 17(3). / 4. The reasonable margin of profit referred to in paragraph 3 shall be calculated on the basis of the profit margin applied by those…

Added(c) governance provisions;

RemovedArticle 18 – paragraph 4: 4. Payment service providers shall implement the limits set by the Commission in accordance with Article 16 on the use of the digital euro by natural and legal persons residing or established in Member States whose currency is not the euro, which are applicable in those Member States.

Added(d) pilot testing in accordance with Article 4a; and

RemovedArticle 19 – paragraph 3: 3. The agreement between the Union and the third country shall specify the necessary implementing measures and procedures, and the cases under which the agreement may be restricted, suspended, or terminated, in particular where the third country has been identified as a third country with significant strategic deficiencies in its national anti-money laundering and combating the financing of terrorism regime as referred to in Article 29 of Regulation (EU) 2024/1624 or as a third country with compliance weaknesses in its national anti-money laundering and combating the financing of terrorism regime as referred to in Article 30 of that Regulation. That agreement shall be complemented by an arrangement between the European Central Bank and the national central bank and, where appropriate, the national competent authority of the third country.

Added(e) the development of clear liability rules in accordance with Article 27.

RemovedArticle 19 – paragraph 5: 5. Intermediaries established or operating in the third country shall implement the limits set by the Commission in accordance with Article 16 on the use of the digital euro by natural and legal persons residing or established in the third country, which are applicable in that country.

Added2 b. After the authorisation of the issuance of the digital euro, the European Central Bank shall provide for a roll-out phase of at least 24 months to ensure readiness for a secure, resilient and gradual adaptation by the Eurosystem, payment service providers and digital euro users.

RemovedArticle 22 – paragraph 3: 3. Each online digital euro payment account shall have a unique digital euro payment account number. Each offline digital euro device shall have a unique identifier.

Added1. Before the first issuance of the digital euro, the European Central Bank shall conduct pilot testing in a controlled real-life environment and for a sufficient duration. The pilot testing shall include both online and offline digital euro payment functionalities, with particular attention paid to offline-specific cyber risks, including double-spending prevention, device integrity, cryptographic key protection and the resilience of secure elements.

RemovedArticle 22 – paragraph 4: 4. Each online digital euro payment account or offline digital euro device may be linked to one or more non-digital euro payment accounts that shall be designated by the digital euro user. For the purpose of Article 13(2a) and (4), each online digital euro payment account may only be linked to one non-digital payment account.

Added2. The pilot testing shall involve a selection of payment service providers established in Member States whose currency is the euro, as well as a selection of merchants and end users. Participation in the pilot testing shall be voluntary. The pilot testing shall reflect a diversity of technological environments, network conditions, device types and user profiles, in order to test cyber-resilience, operational resilience and user security awareness.

RemovedArticle 22 – paragraph 5: 5. Payment service providers shall allow the use of online digital euro payment account by more than one digital euro users.

Added3. The pilot testing may include elderly persons and persons with limited digital skills or disabilities, with a view to ensuring that the digital euro is usable for all population groups, including those who are digitally excluded or rely heavily on cash.

RemovedArticle 23 – paragraph 1: 1. The offline digital euro shall be available for offline digital euro payment transactions as of the first issuance of the digital euro. The online digital euro availability shall be subject to conditions set out in the Article 3.

Added4. Upon completion of the pilot testing, the European Central Bank shall publish a report summarising the results of the pilot testing and any identified shortcomings and corrective measures taken, including in relation to cyber-security, operational resilience and privacy protection matters. The report shall be transmitted to the European Parliament, the Council and the Commission.

RemovedArticle 23 – paragraph 2: 2. The digital euro, held online or offline, shall be convertible at par between each other and with respect to electronic money and scriptural money, at the request of the digital euro users.

Added1. The digital euro shall be governed by the provisions of this Regulation, supplemented by the delegated acts that the Commission is empowered to adopt pursuant to Articles 14, 16a, 34, 35, 36 and 37. ▌

RemovedArticle 23 – paragraph 3: 3. Before initiating a digital euro payment transaction, the payee and the payer shall be informed of whether the digital euro payment transaction will be offline or online.

Added1 a. The provision of digital euro payment services shall not affect Member States’ obligation to ensure sufficient and effective access to cash, in particular in rural, remote or underserved areas, in accordance with Regulation (EU) …/…*

RemovedArticle 24 – title: Conditional online digital euro payment transactions

Added2. Within the framework of this Regulation, the digital euro shall also be governed by the detailed measures, rules and standards that may be adopted by the European Central Bank pursuant to its own competences. Where these detailed measures, rules and standards have an impact on the protection of individuals’ rights and freedom with regard to the processing of personal data, the European Central Bank shall consult the European Data Protection Supervisor prior to their adoption. Such detailed measures, rules and standards shall fully implement the principles of data minimisation, and of data protection by design and by default, as defined in Regulation (EU) 2016/679, and shall implement privacy-enhancing technologies.

RemovedArticle 24 – paragraph 1 – introductory part: 1. To ensure that payment service providers and online digital euro users can use conditional digital euro payment transactions, the European Central Bank may:

Added2 a. The European Central Bank shall set up an advisory platform for the digital euro scheme rulebook supporting the implementation of the digital euro on an ongoing basis, in particular with regard to interoperability between payment service providers and with regard to the digital euro settlement infrastructure, usability and technical standards for digital euro payment services. The platform shall include participants from the market for payment services, merchants and representatives of end users and consumer organisations and ensure full transparency in its composition and functioning. The European Central Bank shall ensure that there is public transparency as regards the discussions of the advisory platform.

RemovedArticle 24 – paragraph 1 – point b: (b) provide the functionalities in the online digital euro settlement infrastructure necessary for the execution of conditional digital euro payment transactions, including for the reservation of funds.

Added3. ▌ Directive (EU) 2015/2366 [PSD3/PSR] ▌ shall apply to digital euro payment transactions, with the exception of:

RemovedArticle 25 – paragraph 2: 2. On request by digital euro users, payment service providers distributing the digital euro shall ensure that those users can rely on the functionalities of their European Digital Identity Wallets in accordance with Article 5a of Regulation (EU) 910/2014.

Added(a) the provisions on payment initiation services in Chapter III of that Directive and Regulation [PSD3/PSR];

RemovedArticle 26 – title: Existing infrastructures and interoperability

Added(b) the provisions of that Directive and Regulation [PSD3/PSR] that allow Member States the possibility of setting additional rules.

RemovedArticle 26 – paragraph 1: 1. The European Central Bank shall seek to use to the extent possible and where appropriate the existing infrastructures, protocols and standards governing private digital means of payment and especially those underpinning instant payments.

Added4. In accordance with Article 2(10) of Regulation (EU) 2021/1230,▌the provisions of that Regulation shall apply to digital euro payment transactions.

RemovedArticle 26 – paragraph 1 a (new): 1.a The European Central Bank shall seek to ensure to the extent possible the interoperability of standards governing digital euro payment services with relevant standards governing private digital means of payment and especially those underpinning instant payments. The European Central Bank shall seek to enable, to the extent possible and where appropriate, private digital means of payment to use rules, standards and processes governing the digital euro payment services.

Added5. Without prejudice to Article 37 of this Regulation, Directive (EU) 2024/1640 ▌and Regulation (EU) 2023/1113 ▌ shall apply to digital euro payment transaction services.

RemovedArticle 26 – paragraph 2: For the purpose of the paragraph 1a, interoperability may be supported inter alia by the use of open standards.

Added5 a. Regulation (EU) 2022/2554 shall apply to payment service providers providing digital euro payment services.

RemovedArticle 27 – paragraph 1: 1. Without prejudice to the disputes concerning the lawfulness of the processing of personal data, disputes regarding online digital euro payment transactions as well as funding and defunding operations for the offline digital euro transactions shall be governed by the rules provided for in Directive (EU) 2015/2366. Directive (EU) 2020/1828 of the European Parliament and of the Council1a shall apply to the representative actions brought against infringements of provisions of this Regulation that harm or may harm the collective interests of consumers. / 1a Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers and repealing Directive 2009/22/EC (OJ L 409, 4.12.2020, p.1, ELI: http://data.europa.eu/eli/dir/2020/1828/oj ).

Added5 b. The legislative acts referred to in paragraphs 2 to 5a shall apply to the extent that a matter is not covered by this Regulation, and insofar as those legislative acts are compatible with it. Where a matter is covered by both this Regulation and those legislative acts, this Regulation shall prevail.

RemovedArticle 27 – paragraph 3: 3. The European Central Bank shall act as the dispute-settlement body for disputes among payment service providers relating to the application of the Rulebook governing the operation of the digital euro. The role and functions of the European Central Bank in this capacity shall be established by contract between the European Central Bank and all payment service providers distributing the digital euro. To perform those functions, the European Central Bank shall adopt internal rules and a governance framework for dispute settlement that ensures no interference and full independence from the European Central Bank payment-system oversight functions. Decisions issued by the European Central Bank under this mechanism shall be final and binding on all participating payment service providers and directly enforceable vis-à-vis their users through the payment service providers’ contractual obligations without prejudice to the right to seek redress before judicial authorities in accordance with Union and national law.

Added1. ▌Member States whose currency is the euro shall designate one or more competent authorities to ensure compliance with Chapter III ▌ in their territory. Member States shall designate one or more competent authorities to ensure compliance with Article 17 in their territory. They shall inform the Commission thereof, indicating any division of functions and duties.

RemovedArticle 28 – paragraph 1 – subparagraph 1 – introductory part: Payment service providers distributing the digital euro may provide digital euro users with the front-end services developed by the European Central Bank to allow digital euro users to access and use digital euro payment services in accordance with Annexes II and IIa.

Added▌Member States whose currency is the euro shall lay down the rules on penalties applicable to infringements of Chapter III ▌. Member States shall lay down the rules on penalties applicable to infringements of Article 17. They shall take all measures necessary to ensure that these rules are implemented, including the power of competent authorities to access the necessary data. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall, without delay, notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.

RemovedArticle 28 – paragraph 1 – subparagraph 1 – point a: deleted

Added2. Directive (EU) 2015/2366 ▌, shall govern the supervision by competent authorities, the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning compliance by Payment Services Providers of their obligations pursuant to Chapters IV, V, VI and VII of this Regulation.

RemovedArticle 28 – paragraph 1 – subparagraph 1 – point b: deleted

Added2 a. Regulation (EU) 2016/679 shall govern supervision by competent authorities, the sanctions regime and supervisory arrangements between the competent authorities of the home Member States and the host Member States, concerning compliance by data controllers with their obligations pursuant to Chapter VIII of this Regulation.

RemovedArticle 28 – paragraph 1 – subparagraph 1 a (new): Payment service providers distributing the digital euro may offer their own front-end services or front-end services offered by other payment service providers.

Added3. Regulation (EU) 2024/1624 and Directive (EU) 2024/1640▌ shall govern the supervision by competent authorities, the enforcement regime and supervisory arrangements between the competent authorities of the home Member States and of the host Member States, concerning the activities of Payment Services Providers in relation to the digital euro for the purpose of ensuring compliance with Chapter IX of this Regulation.▌

RemovedArticle 28 – paragraph 1 – subparagraph 2: deleted

Added4. For the purposes of supervising compliance with Chapters IV, V and VII of this Regulation, the competent authorities referred to in paragraph 2 shall cooperate with the European Central Bank.