EU pushes digital euro and banking reforms to boost competitiveness

At a Dublin forum, EU Commission Vice-President Valdis Dombrovskis presented a three-part agenda: launching a digital euro, expanding the euro’s global footprint, and simplifying the banking regulatory framework. He noted that cash usage at point-of-sale fell from 72% in 2019 to 52% in 2024 and that the EU currently lacks a native digital payment system. The digital euro will coexist with cash and is not intended to compete with private payment providers.

Dombrovskis highlighted that two-thirds of card transactions in the euro area are processed by non-European firms, and 13 member states rely entirely on international schemes. He also announced a push to include EU sovereign bonds in major bond indices, citing a market now worth about €800 billion. Finally, the Commission has introduced 12 omnibus simplification proposals expected to generate at least €17 billion in annual administrative savings for companies, including banks, while preserving resilience.