he backing of the digital euro by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) marks more than another step in Europe’s digital transformation. It reflects a broader shift in how the European Union understands sovereignty in an increasingly interconnected world.
For years, strategic autonomy was largely associated with defence, energy security, or industrial policy. Increasingly, however, European policymakers are recognising that financial infrastructure is no less strategic. In a world where economic competition and geopolitical rivalry increasingly intersect, the ability to control the systems through which money moves has become an important dimension of political power.
Much of the public debate surrounding the digital euro has focused on its technical characteristics. For instance, whether it will protect privacy, how it will coexist with commercial banks, or whether Europeans actually need another digital payment option. These are legitimate questions, yet they risk obscuring the broader strategic context: the digital euro is not primarily a response to technological change but to Europe’s growing awareness of its dependence.
Today, most digital payments made within the euro area ultimately rely on infrastructures developed and operated by non-European companies. Visa and Mastercard process the overwhelming majority of card payments, while Apple Pay and Google Pay increasingly shape the digital wallet ecosystem.
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