Stefan Berger, a prominent figure in the European Parliament’s discussions on the digital euro, has made the decision to step down in order to address allegations of sabotage and to allow for progress to continue without controversy. Berger, who had been leading the Parliament’s work on the digital euro, had become a vocal critic of the project, leading to accusations that he was intentionally delaying its development.
In a statement to POLITICO, Berger explained that he felt it was time for someone who did not hail from Germany and who was not under suspicion of deliberately stalling the talks to take over the leadership role. Markus Ferber, who is responsible for economic issues within the European People’s Party, will be tasked with selecting Berger’s replacement within the next week.
The digital euro, envisioned as a virtual counterpart to physical euro coins and notes, is intended to enhance payment systems within the eurozone and reduce reliance on foreign companies such as Visa and Mastercard. However, the project has encountered resistance, particularly from German banks and citizens who have expressed concerns about its design and potential financial risks. Berger also highlighted worries that the digital euro could lead to sudden withdrawals, negatively impacting smaller banks.
Despite Berger’s involvement in the creation of MiCA, a regulatory framework that will establish clear rules for cryptocurrencies in the EU, he faced difficulties garnering similar support for the digital euro. While MiCA provided clarity for crypto firms operating across the EU, the digital euro has faced scrutiny over privacy issues and technical intricacies. Berger had proposed a phased approach, beginning with wholesale transactions for the digital euro, but critics accused him of missing deadlines and impeding progress, prompting calls for his removal earlier in the year.
The European Central Bank is currently conducting feasibility tests for the digital euro, with plans for a pilot program in the near future. In a recent progress report on the digital euro, the ECB hinted at the possibility of discontinuing offline digital euro payments if agreements cannot be reached with smartphone manufacturers on secure chip integration.
As the debate over the digital euro continues, stakeholders will be closely monitoring developments to see how the project evolves and whether it can overcome the challenges it currently faces. Berger’s resignation marks a significant moment in the project’s trajectory, as new leadership will now be tasked with navigating the complexities and controversies surrounding the digital euro.