29 Amendments of José Manuel GARCÍA-MARGALLO Y MARFIL related to 2023/0212(COD)
Amendment 123 #
Proposal for a regulation
Recital 2
Recital 2
(2) On 2 October 2020, the European Central Bank published its “Report on a digital euro”23 . The report formed the basis for seeking views on the benefits and challenges of issuing a digital euro and on its possible design. In said report, the European Central Bank stated the need for a comprehensive and balanced assessment of the issuance of the digital euro, requiring the involvement of the private sector and potential users. __________________ 23 European Central Bank, Report on a digital euro, October 2020.
Amendment 124 #
Proposal for a regulation
Recital 3
Recital 3
(3) Central bank money in the form of banknotes and coins cannot be used for online payments. Today, online payments rely entirely on commercial bank money. The acceptability and fungibility of commercial bank money rely on its convertibility on a one-to-one basis to central bank money with legal tender, which serves as a monetary anchor. That monetary anchor is at the core of the functioning of monetary and financial systems. It underpins users’ confidence in commercial bank money and in the euro as a currency and is therefore essential to safeguard the stability of the monetary system in a digitalised economy and society. As central bank money in physical form alone cannot address the needs of a rapidly digitalising economy, this could gradually remove the monetary anchor for commercial bank money. It is therefore necessary to introduce a new form of official currency with legal tender which is risk free and helps visualise the convertibility at par of the money issued by various commercial bankIt is therefore necessary to assess the need to issue a new digital form of official currency with legal tender to complement the current cash offering for citizens and businesses to use for everyday payments.
Amendment 129 #
Proposal for a regulation
Recital 4
Recital 4
(4) To address the need of a rapidly digitalising economy, the digital euro should support a variety of use cases of retail payments. Those use case include person to person, person to business, person to government, business to person, business to business, business to government, government to person, government to business, and government to government payments. In addition, the digital euro should also be able to fulfil future payments needs, and in particular machine to machine payment in the context of Industry 4.0 and payments in the decentralised internet (web3). These emerging needs must be assessed before being met by the digital euro. The assessment must be carried out in cooperation with the public sector, the better positioning of which will allow for an analysis of new needs. The digital euro should not cater for payments between financial intermediaries, payment service providers and other market participants (that is to say wholesale payments), for which settlement systems in central bank money exist and where the use of different technologies is being further investigated by the Eurosystem.
Amendment 132 #
Proposal for a regulation
Recital 5
Recital 5
(5) In a context where cash alone cannot answer the needs of a digitalised economy, it is essential to support financial inclusion by ensuring universal, affordable and easy access to the digital euro to individuals in the euro area, as well as its wide acceptance in payments. Financial exclusion in the digitalised economy may increase as private digital means of payments may not specifically cater for vulnerable groups of the society or may not be suitable in some rural or remote areas without a (stable) communication network. According to the World Bank and the Bank for International Settlements, “efficient, accessible and safe retail payment systems and services are critical for greater financial inclusion”24 . That finding was further substantiated by the study on new Digital Payment Methods commissioned by the European Central Bank, which concluded that for the unbanked/underbanked/offline population, the most important features of a new payment method are easiness of use, not requiring technological skills, and to be secure and free of charge25 . A digital euro would offer a public alternative to private digital means of payments and support financial inclusion as it would be designed along these objectives, thus catering for free access, easiness of use and wide accessibility and acceptance. Despite this, reports such as the Bank of Spain’s 2023 report 230526 a show that numerous private, public and public-private initiatives have been developed at national and European level to combat monetary exclusion in the digital age. For its part, Directive 2019/882 on the accessibility requirements for products and services also combats such exclusion. For all these reasons, a digital euro could continue to foster financial inclusion on the basis of all the measures taken previously. __________________ 24 https://documents1.worldbank.org/curated/ en/806481470154477031/pdf/Payment- Aspects-of-Financial-Inclusion.pdf 25 Study on New Digital Payment Methods (europa.eu), March 2022. According to the World Bank, financial inclusion means that individuals have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance”. 26 a https://www.bde.es/f/webbde/SES/Seccion es/Publicaciones/PublicacionesSeriadas/ DocumentosOcasionales/23/Fich/do2305. pdf
Amendment 139 #
Proposal for a regulation
Recital 7
Recital 7
(7) Future developments in digital payments may affect the role of the euro in retail payment markets both in the European Union and internationally. Many central banks around the world are currently exploring the issuance of central bank digital currencies (‘CBDCs’) and some countries have already issued a CBDC. In addition, so-called third country stablecoins not denominated in euro, could, if widely used for payments, displace euro denominated payments in the Union’s economy by satisfying demand for programmable payments (which are referred as conditional payments in the context of this Regulation), including in e- commerce, capital markets or industry 4.0. AShould these risks materialise, a digital euro wcould therefore be importantbe a useful tool to maintain the role of the euro in the digital age.
Amendment 141 #
Proposal for a regulation
Recital 8
Recital 8
(8) It is thereforShould the above scenarios come to pass, and having assessed the need to adopt the digital euro together with the public sector, it shall be necessary to lay down a legal framework for establishing a digital form of the euro with the status of legal tender, for use by people, businesses and public authorities in the euro area. As a new form of the euro available to the general public, the digital euro should have important societal and economic consequences. It is therefore necessary to establish the digital euro and to regulate its main characteristics, as a measure of monetary law. The European Central Bank is competent to issue and to authorise the issuance of the digital euro by national central banks of the Member States whose currency is the euro, exercising its powers under the Treaties. On the basis of those powers and in accordance with the legal framework set out in this Regulation, the European Central Bank should thus be able to decide whether to issue the digital euro, at which times and in what amounts, and other particular measures that are intrinsically connected to its issuance, in addition to banknotes and coins. Before issuing the digital euro, the European Central Bank shall provide the European Parliament, Council and European Commission with a report justifying the need to issue the digital euro with a detailed analysis of the decisions adopted and of the impact assessments. The adoption in turn shall take place within a realistic time frame without overburdening the private sector nor altering the good functioning of the monetary union.
Amendment 155 #
Proposal for a regulation
Recital 18
Recital 18
(18) Since the digital euro requires the capacity to accept digital means of payment, imposing an obligation of mandatory acceptance of payments in digital euro on all payees could be disproportionate. To this end, exceptions to the mandatory acceptance of payments in digital euro should be provided for natural persons acting in the course of a purely personal or household activity. Exceptions to mandatory acceptance should also be provided for microenterprises, which are particularly important in the euro area for the development of entrepreneurship job creation and innovation, playing a vital role in shaping the economy. Union policies and actions should reduce regulatory burdens for enterprises of this size. Exceptions to mandatory acceptance should also be provided for non-profit legal entities which promote the public interest and serve the public good performing a variety of goals of societal interest, including equity, education, health, environmental protection and human rights. For microenterprises and non-profit legal entities, the acquisition of the required infrastructure and the acceptance costs would be disproportionate. They should therefore be exempted from the obligation to accept payments in digital euroestablishments, natural or legal persons acting on their own behalf who do not wish to accept it as a means of payment. Union policies and actions should reduce regulatory burdens for enterprises of this size. In such cases, other means for the settlement of monetary debts should remain available. Nevertheless, microenterprises and non- profit legal entitiesthose that accept comparable digital means of payment from payers should be subject to the mandatory acceptance of payments in digital euro. Comparable digital means of payment should include debit card payment or instant payment or other future technological solutions used at the point of interaction, but should exclude credit transfer and direct debit that are not initiated at the point of interaction. Microenterprises and non-profit legal entities that do not accept comparable digital means of payment from their payers in settlement of a debt (e.g. they only accept euro banknotes and coins), but may use digital payments in settlement of a debt to their payees (e.g. they pay with credit transfers), should not be subject to the mandatory acceptance of payments in digital euro. Finally, a payee may also refuse a payment in digital euro if the refusal is made in good faith and if the payee justifies the refusal on legitimate and temporary grounds, proportionate to concrete circumstances beyond its control, leading to an impossibility to accept payments in digital euro at the relevant time of the transaction, such as a power outage in the case of online digital euro payment transactions, or a defective device in the case of offline or online digital euro payment transactions.
Amendment 251 #
Proposal for a regulation
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
11. Funding: ‘funding’ means the process whereby a digital euro user acquires digital euros, in exchange for either cash or other funds, creating a means of payment with legal tender status, representing a direct liability of the European Central Bank or a national central bank towards that digital euro user;
Amendment 275 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. In accordance with the Treaties, the European Central Bank shall have the exclusive right to authorise the issue of the digital euro, and the European Central Bank and the national central banks may issue the digital euro, subject to a decision for issuance in accordance with paragraph 3.
Amendment 281 #
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2a. Prior to the issuance of the digital euro, the ECB shall provide the European Parliament, the Council and the Commission with a report justifying the need for the issuance and an in-depth analysis of the impact of the digital euro on the payments market. The ECB shall guarantee the smooth and orderly coexistence with existing models, ensuring that such issuance does not have a negative impact on financial stability and uncontrolled credit provision
Amendment 377 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. With a view to enabling natural and legal persons to access and use digital euro, to defining and implementing monetary policy and to contributing to the stability of the financial system, the use of the digital euro as a store of value mayshall be subject to limits.
Amendment 379 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. With a view to ensuring an effective use of the digital euro as a legal tender means of payment, and to avoiding excessive charges for merchants subject to the obligation to accept the digital euro under Chapter II while providing compensation for the relevant costs incurred by payment services providers for the provision of digital euro paymentservices, the level of charges or fees to be paid by natural persons or merchants to payment service providers, or between payment service providers, shall be subject to limits.
Amendment 391 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. For the purpose of Article 15(1), the European Central Bank and the Single Resolution Mechanism shall develop instruments to limit the use of the digital euro as a store of value and shall decide on their parameters and use, in accordance with the framework set out in this Article. PSPs providing account servicing payment services within the meaning of Directive 2015/2366 to natural and legal persons referred to in Article 12(1) shall apply these limits to digital euro payment accounts.
Amendment 398 #
Proposal for a regulation
Article 16 – paragraph 2 – point a
Article 16 – paragraph 2 – point a
(a) safeguard the objectives set out in Article 15(1), in particular financial stability, especially as regards credit institutions and their lending capacity;
Amendment 430 #
Proposal for a regulation
Article 16 – paragraph 8
Article 16 – paragraph 8
8. Within the framework of this Regulation, tThe digital euro shall not bear interest.
Amendment 470 #
Proposal for a regulation
Article 17 – paragraph 5
Article 17 – paragraph 5
Amendment 475 #
Proposal for a regulation
Article 17 – paragraph 5 – point a
Article 17 – paragraph 5 – point a
Amendment 479 #
Proposal for a regulation
Article 17 – paragraph 5 – point b
Article 17 – paragraph 5 – point b
Amendment 482 #
Proposal for a regulation
Article 17 – paragraph 5 – point c
Article 17 – paragraph 5 – point c
Amendment 487 #
Proposal for a regulation
Article 17 – paragraph 5 – point d
Article 17 – paragraph 5 – point d
(d) the methodology to be developed by the European Central Bank for the monitoring and the calculations of the amounts referred to in paragraphs 2 shall band 3 shall ensure that the amounts referred to in paragraph 2 are uniform and applied in a non-discriminatory manner across the euro area.
Amendment 530 #
Proposal for a regulation
Article 26 – paragraph -1 (new)
Article 26 – paragraph -1 (new)
-1 To ensure that the rules governing digital payment services in euro meet market needs and technological developments over time, following a transparent process including the active involvement of all stakeholders, the rulebook for the digital euro system shall be jointly governed by the European Central Bank and a payment system operator representing European payment service providers and users.
Amendment 545 #
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
Amendment 565 #
Proposal for a regulation
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Payment Service Providers executing digital euro payment transactions shall verify whether any of their digital euro users are listed persons or entities. Payment service providers shall carry out such verifications immediately24 hours after the entry into force of any new or amended restrictive measures adopted in accordance with Article 215 TFEU providing for asset freeze or prohibition of making funds or economic resources available, and at least once every calendar day.
Amendment 568 #
Proposal for a regulation
Article 29 – paragraph 3
Article 29 – paragraph 3
Amendment 665 #
Proposal for a regulation
Article 40 – paragraph 2 – introductory part
Article 40 – paragraph 2 – introductory part
2. Before the planned issuance of the digital euro and ahead of the implementation of any changes of the parameters and use of the instrumentNo later than 6 months rbeferred to in Article 16 or at least every three years after theore the planned issuance of the digital euro, the European Central Bank shall provide to the European Parliament, the Council and the Commission:
Amendment 668 #
Proposal for a regulation
Article 40 – paragraph 2 – point a
Article 40 – paragraph 2 – point a
(a) information on the instruments to limit the use of the digital euro as referred to in Article 16 and the parameters that the European Central Bank plans to adopt in view of the prevailing financial and monetary environment as well as the plan to ensure an orderly and smooth coexistence with the existing models so as to foster financial stability;
Amendment 673 #
Proposal for a regulation
Article 40 – paragraph 2 – point b a (new)
Article 40 – paragraph 2 – point b a (new)
(ba) the report referred to in Article 4(3) with the justification and determinants of the issuance of the digital euro and the corresponding impact assessment.
Amendment 675 #
Proposal for a regulation
Article 40 – paragraph 2 a (new)
Article 40 – paragraph 2 a (new)
2a. Any possible changes to the parameters and instruments referred to in Article 16 shall respond only to a change in the payment needs of customers, ensuring that the caps continue to meet the objectives defined in Article 16(2a).
Amendment 676 #
Proposal for a regulation
Article 40 – paragraph 2 b (new)
Article 40 – paragraph 2 b (new)
2b. No later than 6 months before any modification of the parameters and instruments referred to in Article 16 or at least every three years after the issuance of the digital euro, the European Central Bank shall provide the European Parliament, the Council and the Commission with the reports referred to in points (b) and (c) of paragraph 2.