The introduction of the digital euro is causing a major confrontation between the European Central Bank and EU member states. At the heart of this battle: control of a new monetary instrument which could upset the balance of financial powers in Europe. Nine countries, including France and Germany, already openly oppose Frankfurt's ambitions.
A battle for control that divides Europe
The ECB has been developing a digital euro project for several years, intended to compete with American payment giants like Visa and Mastercard. The Frankfurt-based institution wants to gain exclusive control over the amount of digital currency that citizens will be able to hold in their e-wallets.
This suction raises eyebrows in Brussels and European capitals, where there are fears of an excessive concentration of power in the hands of technocrats.
The issues go far beyond the technical framework. Indeed, a holding limit that is too high could, in the event of a crisis, cause a massive flight from traditional bank deposits to these new digital wallets. This prospect is particularly worrying for governments, keen to preserve the stability of their national banking systems.
Through this debate a fundamental question emerges: where should we place the cursor between national sovereignty and European monetary integration?
Tense negotiations around a difficult compromise
The ECB defends its position by relying on its mandate as guardian of European monetary policy. The institution considers the digital euro as a key element of the continent's monetary sovereignty, particularly in the face of the domination of American payment systems which currently manage 70% of transactions in the EU.
However, a group of nine member countries, led by Germany, France and the Netherlands, dispute this vision. They claim their “political supremacy” over a project which, according to them, goes beyond the simple monetary framework to affect the very organization of the daily financial services of European citizens.
An intermediate solution is emerging: legislators could set a general framework, while leaving the ECB the final word on the technical arrangements. But this proposal is not unanimous, with some States fearing that it is nothing more than a cover-up poorly masking an excessive centralization of monetary power.
This crucial debate on the digital euro illustrates the persistent tensions between European integration and the preservation of national sovereignties. The outcome of this confrontation will outline the contours of the future European monetary architecture.
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