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On September 10, the Industry, Research and Energy (ITRE) committee has adopted its position on draft legislation creating European Business Wallets, a secure digital tool enabling companies and public authorities to interact online, across all EU Member States, in a simple and legally valid way. The Wallet will become a digital briefcase for businesses, where they can store, manage, and share official documents and credentials securely.
The text adopted on September 10 aims to replace fragmented, paper-based and country-specific administrative procedures with a single, secure and legally recognised digital tool for businesses.
The use of European Business Wallets will be voluntary for economic operators, while all public sector bodies will be required to enable their acceptance for the purposes of identification and authentication, signing or sealing, submitting documents, and sending or receiving notifications in administrative and reporting procedures.
According to the European Commission, if widely adopted, the European Business Wallets could unlock up to €150 billion in savings for businesses each year by reducing administrative processes and costs.
In their amendments (parts 1, 2) to the Commission’s proposal, MEPs call for the design and deployment of European Business Wallets to consider the needs of smaller businesses, to deliver affordable and user-friendly solutions, under transparent, fair, reasonable and non-discriminatory conditions.
MEPs go further in protecting the European Business Wallet ecosystem from third-country interference, and prohibit direct, but also indirect control of wallet providers by third-country entities or governments. This sovereignty requirement will extend to providers of the integrated qualified electronic registered delivery service (QERDS, the digital equivalent of registered mail), as well as cloud computing service providers hosting wallet data: they must be established in the Union, with data stored, processed and transferred exclusively on EU territory, say MEPs.
They also added provisions closing potential loopholes through complex corporate structures or ownership arrangements, as well as a prohibition on using wallet-generated data to train or fine-tune AI systems operated by third-country entities.
MEPs also advocate giving a more workable timeline for public bodies to adapt to the technical specifications to be adopted by implementing acts. Member States will have to provide support and solutions to smaller public sector bodies, such as local and municipal authorities, to comply, as the regulation should not inadvertently widen the gap between well-resourced central administrations and small public entities, say MEPs. MEPs furthermore call for a Roadmap for efficient implementation, to identify key milestones and priority use-cases and ensure interoperability with existing digital solutions at both Union and national level.
MEPs also advocate giving a more workable timeline for public bodies to adapt to the technical specifications to be adopted by implementing acts. Member States will have to provide support and solutions to smaller public sector bodies, such as local and municipal authorities, to comply, as the regulation should not inadvertently widen the gap between well-resourced central administrations and small public entities, say MEPs. MEPs furthermore call for a Roadmap for efficient implementation, to identify key milestones and priority use-cases and ensure interoperability with existing digital solutions at both Union and national level.
“The European Business Wallets offer a harmonised digital solution for companies and the public sector, bringing down administrative costs and enhancing public trust in digital interactions, through a single digital identity. As a future key digital building block, the Business Wallets must be a truly European solution that help strengthen the EU’s digital sovereignty, reduce vulnerabilities and limit exposure to third-country laws” said lead MEP Eero Heinäluoma (S&D, Finland).
The draft report was adopted with 64 votes to 7, with 4 abstentions, with a set of compromise amendments. With 65 votes to 9, with 1 abstention, MEPs voted to open negotiations with the Council of Ministers on the file. The decision will be notified to the full Parliament in the next plenary session.