Getting the digital euro right: Small merchants hold the key to Europe’s financial independence | Socialists and Democrats

The Socialists and Democrats (S&D) group is urging European legislators to prioritize small merchants in the upcoming digital euro framework, emphasizing that the project must benefit the real economy. Nikos Papandreou, the S&D negotiator on the digital euro, stated that Europe must regain monetary independence through a reliable public means of payment where business owners are better off from day one. The group argues that any merchant fee associated with the digital euro should be predictable, affordable, transparent, and fair, offering a genuine alternative to existing private card schemes that charge higher profits. Legislative progress has been significant since the project launched in July 2021. Following the European Commission’s proposal in June 2023, the European Parliament appointed Stefan Berger from the EPP as rapporteur. Berger stepped down in December 2024 and was succeeded by Fernando Navarrete Rojas, who presented a draft report in November 2025. This report introduced key changes including a distinction between offline and online digital euro versions, strengthened privacy safeguards, and a refined compensation framework with a ten-year review clause. In December 2025, the Council adopted its negotiating position, setting out a coherent framework for both digital and physical public money. Currently, negotiations in the ECON committee are ongoing and focus specifically on the compensation framework, including merchants’ fees to banks per digital euro transaction. The S&D Group maintains that protecting European citizens and small businesses is essential while supporting European banks in making the digital euro available.