Between June 6 and 9, over 185 million individuals from the 27 member states of the European Union participated in the election process to choose representatives for the European Parliament for the next five years. This event is crucial as it will set the course for the EU’s political landscape for the foreseeable future, with crypto and blockchain industries also being impacted.
The election outcomes were varied: the Christian Democrats gained 10 seats, the Social Democrats retained their position despite losing four seats, and the pro-business Renew Europe Group saw a decrease of 23 seats. The Greens suffered a setback with a loss of 18 seats, while far-right parties saw significant gains.
In light of these results, what are the plans of these political parties regarding the crypto and blockchain sectors? Cointelegraph conducted a review of the election manifestos of various parties and engaged in interviews with members of the European Parliament to uncover their strategies for the future.
European People’s Party (EPP), also known as Christian Democrats, secured 186 seats (a gain of 10). The EPP Group, being one of the largest and most influential political groups in the European Parliament, adopts a cautious yet forward-thinking approach towards cryptocurrencies, digital euro, and blockchain technology. The group acknowledges the transformative potential of blockchain and digital currencies in enhancing financial services and economic efficiency, while also stressing the need for robust regulatory frameworks to prevent misuse and ensure consumer protection.
Stefan Berger, MEP and member of the EPP Group, noted that the party supports the current MiCA law but envisions potential future adjustments to it. The EPP advocates for a relaxed tax policy for crypto to boost innovation in Europe and opposes restrictive tax measures that could hinder the adoption of crypto assets.
The Progressive Alliance of Socialists and Democrats (S&D) lost 4 seats but remains cautiously optimistic about blockchain and cryptocurrencies. The group acknowledges the benefits of these technologies in promoting financial inclusion and improving public services, while also emphasizing the importance of stringent rules to combat fraud, money laundering, and tax evasion.
Renew Europe, a centrist and liberal political group that won 79 seats (a loss of 23), has been a vocal participant in debates surrounding crypto in the European Parliament. The group advocates for a robust regulatory framework for crypto assets to prepare the EU for digital transformations. Renew Europe supports the development of a digital euro and a European digital identity to enhance competitiveness and promote financial inclusion.
The European Conservatives and Reformists Group (ECR), with 73 seats (a gain of 4), holds a pragmatic view on cryptocurrencies, aiming to integrate them into a diverse financial ecosystem while supporting strict anti-money laundering measures. The ECR is skeptical about a digital euro, citing concerns about its necessity and potential risks.
The Identity and Democracy group (ID), which gained 9 seats, does not have an official stance on digital currencies and blockchain. However, member parties like Germany’s Alternative for Germany (AfD) oppose the introduction of a digital euro, citing threats to individual privacy and freedom.
The Greens/European Free Alliance (Greens/EFA) lost 18 seats and takes a cautious approach towards blockchain technology, emphasizing transparency and sustainability. The group supports exploring a digital euro that aligns with sustainability goals and contributes to social welfare.
The Left in the European Parliament (GUE/NGL), with 36 seats (lost 1), expresses concerns about cryptocurrencies’ potential to facilitate illicit activities and increase economic inequality. The Left supports a digital euro designed to enhance public control over the monetary system and promote economic justice.
Non-Inscrits, made up of MEPs not affiliated with recognized political groups, include Volt Europa, a pro-European federalist party advocating for innovation and digital rights. The party supports a digital euro without limits and emphasizes the need for clarity and consistency in regulations across the EU.
The European Christian Political Movement (ECPM), with 4 seats, supports technological progress while prioritizing human dignity and fundamental rights. The party has not developed a comprehensive policy on cryptocurrencies but is critical of initiatives compromising privacy and anonymity.
The diverse composition of the newly elected European Parliament is expected to lead to debates and potential adjustments to frameworks like MiCA. With differing perspectives on the digital euro and regulatory oversight, the future of crypto and blockchain in the EU remains uncertain but promising.