From Commission proposal to political file, Europe embraces the Digital Business Wallet

Last month, the European Commission presented its proposal for a Regulation establishing European Business Wallets. At its core, the Business Wallet would provide a legally valid and interoperable means for businesses and administrations to identify themselves and exchange verified data across borders. 

Legislative scrutiny has now shifted to the Council and the European Parliament. While the Parliament has yet to appoint its negotiating team, the Council has moved quickly, with the Working Party on Telecommunications and Information Services opening discussions on 25 November. Early engagement suggests that Member States recognise both the economic relevance of the file and its political sensitivity.

Member States signal support with conditions

Initial reactions aired at the 5 December Transport, Telecommunications and Energy Council reveal broad support for the direction of travel, coupled with familiar concerns over implementation. 

Executive Vice-President Henna Virkkunen positioned the Business Wallet as an enabler of the digital transition and a concrete response to calls for administrative simplification. Several Member States echoed this narrative, viewing the proposal as a means to facilitate cross-border business and unlock new growth opportunities.

Italy emerged as one of the strongest advocates, emphasising the potential gains for cross-border activity. At the same time, Rome underscored the importance of tight coordination with the European Digital Identity Wallets and existing national systems, reflecting a wider concern that parallel digital tools could undermine usability if not properly aligned.

Scepticism was voiced by countries such as Estonia and Poland, where advanced national digital infrastructures are already in place. These Member States warned against duplication, unnecessary costs and unresolved technical and legal questions. Their interventions point to a recurring tension in EU digital policy between harmonisation and national flexibility, with calls for integration rather than replacement of existing systems.

The next test will come on Tuesday, when the Council working group meets for the final time under the Danish Presidency. Denmark may attempt to table an initial compromise to maintain momentum before Cyprus takes over in January. 

How far Member States are willing to converge at this early stage will offer a first indication of whether the Business Wallet can move swiftly from political concept to operational reality.