Stefan Berger Steps Aside in European Parliament’s Digital Euro Discussions

Stefan Berger, a prominent figure in the European Parliament’s discussions surrounding the digital euro, has made the decision to step aside in order to facilitate progress without controversy.

The individual who has been spearheading the Parliament’s efforts on the digital euro and who has emerged as one of its most vocal critics has chosen to resign to put an end to allegations that he was intentionally obstructing the project, according to sources at POLITICO.

Berger, a seasoned German lawmaker affiliated with the center-right European People’s Party, confirmed his departure to POLITICO, emphasizing the need for someone not associated with Germany and free from suspicions of deliberately impeding discussions to take over the reins. Markus Ferber, responsible for economic affairs within the EPP, is expected to appoint Berger’s successor within the next week, as reported.

The concept of the digital euro, which is envisioned as a virtual counterpart to physical euro coins and banknotes, is aimed at enhancing payment systems within the eurozone and reducing reliance on external entities such as Visa and Mastercard. However, the initiative has encountered resistance, particularly from German financial institutions and citizens who harbor concerns regarding its structure and potential financial vulnerabilities. Berger has also voiced apprehensions that its introduction could trigger sudden capital outflows, adversely affecting smaller banks.

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While Berger played a pivotal role in the development of MiCA, legislation set to establish clear regulatory frameworks for cryptocurrencies in the EU, he has encountered obstacles in garnering similar support for the digital euro. While MiCA offers comprehensive guidelines for crypto enterprises across the EU, the digital euro has been met with apprehensions concerning data privacy and technical intricacies.

Having advocated for a phased implementation, commencing with wholesale transactions for the digital euro, Berger faced criticism for missing deadlines and impeding progress, prompting rival lawmakers to call for his resignation earlier this year.

The European Central Bank is presently conducting feasibility tests for the digital euro, with plans for a pilot initiative in the forthcoming years. In a recent progress report on the digital euro released in December, the institution hinted at the possibility of eliminating offline digital euro transactions if consensus cannot be reached with smartphone manufacturers on integrating secure chips.

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