EU member states have agreed a negotiating position on plans to create “European business wallets” — digital tools intended to help companies prove their identity and exchange official documents securely across borders.
The proposed wallets would build on the EU’s updated eIDAS2 rules, which set standards for trusted digital identity services across the bloc, the Council of the EU said in a statement on Tuesday.
It added that the aim is to make it easier for firms operating in more than one member state to handle tasks that can currently require in-person checks or paper documents.
Under the plans, companies would be able to use a wallet to verify the identity of other parties and prove their own identity digitally.
Businesses could also create, store and share “trusted documents” such as licences, permits and certificates, as well as electronically sign, timestamp and seal documents.
The Council said the wallets would also allow firms to delegate legal authority to representatives and communicate securely with other companies or public administrations through a single digital channel.
What the Council wants changed
Member states said the EU-wide wallets should complement existing national systems used for business-to-business and business-to-government interactions, rather than replace them.
The Council also noted that while actions carried out through the wallets would generally be recognised as legally equivalent to paper-based processes, national administrative and procedural requirements would still apply.
The Council said its position raises the threshold for authorising European business wallet providers to strengthen cybersecurity, and calls for the European Commission to set out in implementing acts what paperwork providers must submit.
It also gives national supervisory bodies a greater role in cases of systemic non-compliance by wallet providers, and extends the deadline for authorities to review provider applications to up to 60 days from 30 days in the original proposal.
Negotiations with the European Parliament can begin once MEPs have adopted their own position.
EU leaders have called for a final agreement on the legislation before the end of 2026.
