Members of the European Parliament have agreed upon a new digital identity framework, providing EU citizens with cross-border digital access to key public services. According to the regulation adopted and already agreed upon with EU ministers, this new Digital Identity Wallet is set to allow citizens to identify and authenticate themselves online without having to resort to commercial providers.

This is a practice that is intended to raise trust, security, and privacy concerns. Furthermore, the official announcement states that the EU wallet will be used on a voluntary basis. During negotiations, MEPs secured provisions to safeguard citizens’ rights and foster an inclusive digital system by avoiding discrimination against people opting not to use the digital wallet.

The law provides for free qualified electronic signatures for EU wallet users, which are trusted and have the same legal standing as a handwritten signature, as well as wallet-to-wallet interactions, to improve the fluidity of digital exchanges. Furthermore, MEPs have also mandated an open-source wallet to encourage transparency, innovation and to enhance security. They have also set rules for the registration and oversight of companies involved to ensure accountability and traceability.

Through a privacy dashboard, users will be able to have full control of their data and will be able to request their data be deleted, as provided for under the General Data Protection Regulation. As for next steps, the parliament gave its final green light to the regulation with 335 votes to 190, with 31 abstentions. It will now have to be formally endorsed by the EU Council of Ministers to become law.

Background A study from the European Parliament research service highlights that since the pandemic, the provision of public and private services has become increasingly digital. Existing digital wallet solutions allow users to store and link data in a single, seamless environment on their mobile phones. However, according to the Commission, this convenience comes at the cost of loss of control over personal data, while these solutions are disconnected from a verified physical identity, which makes fraud and cybersecurity threats more difficult to mitigate.

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