European business wallets: Council adopts negotiating position
Today, the Council adopted its position on the proposal to establish European business wallets, a digital tool designed to simplify and secure business interactions across the EU, both between companies and with public administrations.
Building on the eIDAS2 framework, European business wallets will allow companies to digitalise many operations that currently require in-person processing. By providing a harmonised European solution, European business wallets will enable secure, cross-border communication and document exchange for businesses operating in multiple member states.
The adoption of the Council’s position demonstrates the commitment of member states to reach a final agreement on this legislation before the end of 2026, as asked by EU leaders in the conclusions of the March 2026 European Council. The adoption of the European business wallets is in line with the ‘One Europe, one market’ roadmap, aiming to transform the EU business environment into a true seamless single market.
Companies using a European business wallet will be able to:
- Verify the identity of others and prove their own identity digitally.
- Create, store, and share trusted documents instantly, including verified licenses, permits, and certificates.
- Sign, timestamp, and seal documents electronically.
- Delegate legal authority to representatives.
- Communicate securely with other businesses or public administrations through an efficient digital channel.
Key provisions of the Council’s position
- Interoperability: the Council emphasises that European business wallets should complement rather than replace existing national B2B and B2G systems.
- Equivalence: While digital actions via European business wallets are largely recognised as legally equivalent to traditional paper-based processes, the Council specifies that national administrative and procedural requirements remain applicable.
- Power of attorney/legal mandates: Member states specify that the authorisation system established in the proposal is not intended to affect any power of attorney or legal mandates provided under national or Union law.
- EBW providers: To enhance cybersecurity, the Council raised the threshold for European business wallet provider authorisation. Member states also introduced an obligation for the Commission to adopt implementing acts detailing the specifics of the paperwork that needs to be submitted by aspiring European business wallet providers. In case of systemic non-compliance by European business wallet providers, the Council also ensured stronger involvement of the national supervisory body.
- Timings: national supervisory bodies reviewing provider applications have been accorded extended deadlines (up to 60 days instead of the 30 days initially proposed). Furthermore, all the timelines have been grouped and streamlined in the proposal for better clarity.
Next steps
Now that the Council has reached a general approach, negotiations with the European Parliament in the framework of the ordinary legislative procedure may begin as soon as the latter has adopted its position.
