ECB's Digital Euro Hits Political Wall—And That Could Be Bad News For Your Privacy

The European Central Bank's digital euro is facing a harsh reality check in the European Parliament, where lawmakers are raising red flags about everything from banking disruption to privacy violations, according to Reuters.

For investors watching the fintech space and anyone concerned about digital payment privacy, this political pushback could signal a longer road ahead for Europe's answer to China's digital yuan and potential U.S. central bank digital currencies.

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Member of the Executive Board of the European Central Bank Piero Cipollone Presented the digital euro as a "backup payment option" to European Parliament lawmakers on September 4, positioning it as essential protection against cyberattacks on eurozone banks and potential weaponization of U.S. payment systems by the Trump administration. However, the reception was lukewarm at best, with the proposal now stuck in parliament for over two years—far longer than the ECB had anticipated.

The Banking Industry Disruption Nobody Wants to Talk About

The core concern isn't technical - it's existential for traditional banking. The EU parliament worries that a risk-free digital euro account could drain deposits from commercial banks, even with individual account caps. Pierre Pimpie , a lawmaker for the right-wing Patriots for Europe Group, got straight to the heart of the issue: "Isn't it a problem that we don't really have control over the ceiling?" Pimpie said during a European Parliament hearing on the ECB's digital euro proposal.

Here's why this matters for your money: If the ECB sets account limits too low, the digital euro becomes irrelevant for most transactions. Set them too high, and traditional banks could face a deposit crisis as customers move money to guaranteed central bank accounts. It's a delicate balance that could reshape European banking entirely.

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Cipollone argued that financially savvy individuals would find ways around any restrictions anyway, pointing to U.S. stablecoins as an example of how money can already exit the traditional euro system. But this response highlights another concern—the digital euro is being designed partly as a defensive move against American financial dominance rather than purely for citizen benefit.

Privacy Fears Could Kill Public Support

The privacy debate is where things get really interesting for everyday users. Unlike physical cash, every digital euro transaction could potentially be tracked, creating a comprehensive database of European spending habits. While Cipollone assured lawmakers that physical cash wouldn't disappear, critics worry about the gradual erosion of financial privacy.

This isn't just a theoretical concern. With data breaches becoming increasingly common and governments expanding surveillance powers, the digital euro represents a fundamental shift in how private our financial lives remain, according to Reuters reporting. For Americans watching this debate, it's a preview of similar discussions that will inevitably emerge around any U.S. central bank digital currency.

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Timeline Keeps Slipping as Resistance Grows

The procedural hurdles are daunting: Once Navarrete submits his report in the coming weeks, it faces parliamentary debate, amendments, and then negotiations between the European Parliament, Commission, and Council. Markus Ferber , another committee member, suggests a vote might not happen until "spring or early summer next year," told Reuters—and that's just for the legislation.

Even if approved, the ECB estimates it would need another two and a half to three years to build the necessary technology. That puts actual implementation potentially into 2028 or beyond.

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This article ECB's Digital Euro Hits Political Wall—And That Could Be Bad News For Your Privacy originally appeared on newsrealtime .

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Prisoners in Cuba forced to work for exports to Europe, report claims

In Cuban prisons, tens of thousands of inmates are reportedly subjected to forced labor to produce consumer goods intended not only for the national economy, but also for export, particularly to Europe.

The NGO Prisoners' Defenders revealed its findings in a detailed report published Monday, based on official Cuban documents verified by the Institute for Crime and Justice Policy Research at Birkbeck University in London, field research and testimonies from former and current inmates.

Of the 90,000 inmates and 37,458 people serving open prison sentences identified on the island, the report estimates that 60,000 inmates - including political prisoners - are subjected to forced labor in Cuba, in conditions akin to slavery.

The report provides a detailed overview of a large-scale forced labour system organized within a network of 242 penal institutions, including traditional prisons, but also so-called "correctional centers," "camps" and "farms".

The tasks imposed on prisoners varied, ranging from agricultural, industrial, and construction work to garbage collection and cleaning streets, hospitals, and police stations.

The testimonies collected in the report describe harsh working conditions and a daily life filled with deprivation, harassment, and violence, all under close surveillance.

"They force us to work from morning to night, under the scorching sun, without sufficient food or water. If you refuse, the violence is immediate. Several of my colleagues collapsed from exhaustion, others were locked in solitary confinement for days, just for speaking out," recalled Jorge, a former political prisoner.

"Working barefoot in the sugarcane fields, in the rain and heat, is like being a slave," said Maria, a former prisoner of ordinary law. "No compensation, no respect. It's a life of suffering where you wonder every day if you'll make it."

In addition to the lack of adequate tools and minimal safety conditions, which lead to numerous injuries, a large majority of witnesses report serious deterioration in their health as a result of forced labor and the lack of medical care.

The production of sugarcane and especially charcoal from marabu wood, the main agricultural product produced by inmates, is among the most arduous activities. imposed on prisoners , according to the report.

"To produce charcoal, we sleep in the fields, without a bed or a roof. We have to build makeshift huts and can only sleep on bales of straw ... We can only drink dirty water from a trough or from the cows on the neighboring farm," confided one inmate.

Coal and cigars, an opaque prison business

The research indicates that the production of these establishments is largely intended for export.

According to the Prisoners Defenders report, citing data from the Observatory of Economic Complexity (OCE) and the World Bank, in 2023, "charcoal produced by slave labor was Cuba's sixth most exported product," making it the ninth largest charcoal exporter in the world.

The main destinations are Spain, Portugal, Greece, Italy and Turkey, with Cuban charcoal produced in prisons being present in all European countries, according to the report's findings.

Another lucrative sector of the prison trade involves tobacco, and more specifically the production of the iconic Habanos cigars.

"Forced labour affects the Cuban tobacco and Havana cigar production sector, controlled by Tabacuba, in a mixed form of specialised civilians and prisoners subjected to forced labour," said Prisoners Defenders, based on numerous testimonies and an audit of seven Cuban prisons.

The report cites the example of the cigar factory at the Quivican maximum-security prison, where 40 inmates work, supervised by two specialized civilians.

Prisoners work up to 15 hours a day, except Sunday afternoons, without breaks or snacks. They are paid a little over €6 per month, compared to around €100 for workers outside the prison.

According to information gathered by the NGO, cigar factories located in many Cuban prisons account for a large portion of Cuban cigar production for export.

The prisoners work up to 15 hours a day, except Sunday afternoons, without breaks or snacks. They are paid just over €6 per month, compared to around €100 for civilians.

The cigar factories located in many Cuban prisons account for a large proportion of Cuban cigar production for foreign markets, whose margins on exports to Europe are nearly 100%, representing a very lucrative business for the government in Havana, according to the report.

End the international silence

It is also a profitable business for foreign distributors and importers, particularly European ones, who benefit directly or indirectly from the labor of Cuban prisoners.

The opaqueness of supply chains and distribution channels, which sometimes pass through local subsidiaries or commercial partners, hinders product traceability and, consequently, the accountability of foreign companies.

Prisoners Defenders has called on the international community to take action to end forced labor, which is prohibited by the United Nations Human Rights Council, the International Labour Organization, and the European Convention on Human Rights.

Concrete measures recommended by the NGO include the imposition of a targeted embargo on products made with forced labor, particularly those exported to Europe, and the suspension of any trade or cooperation agreement with Cuba as long as forced labor persists.

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However, in the absence of this, the lines have shifted within European institutions. Last November, the European Council adopted a regulation prohibiting the placing on the market, import, and export to the EU of products manufactured using forced labour, regardless of their country of origin.

This regulation, which will enter into force in December 2024, is far from being concretized. EU member states have until December 2027 to begin implementing it.

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Gradually, Africa is becoming a 'NATO' continent: No action, only talk – Alan Kyerematen laments

Alan Kyerematen , Ghana's former Minister of Trade and Industry and one of the architects of the African Continental Free Trade Area (AfCFTA) has argued that Africa is turning into what he calls a "NATO continent," a place where leaders and citizens engage in endless debate without translating their words into action.

Speaking in an exclusive interview on The BreakDown with Sandra Babu-Boateng , Kyerematen reflected on the continent's long struggle with integration. He recalled that when the Organization of African Unity was formed in 1963, the founding fathers imagined a united Africa that traded with itself, created a common market, and ultimately built an African economic community. But within a few years, he said, the newly independent states became consumed by post-colonial struggles and drifted away from that dream.

Although regional blocs such as ECOWAS , SADC, COMESA, and the EAC gradually took shape, Africa's internal trade remained stuck below 15%. For Kyerematen, this symbolized how far the continent still was from genuine integration.

Watch the interview below .

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His own work on trade deepened when he joined the UN Economic Commission for Africa in 2011 to lead the African Trade Policy Centre. He said he grew frustrated with the perception that Africa had become a "talk shop," where ambitious policies were drafted but rarely implemented. To counter that, he and his team pushed for not just a legal framework in the form of AfCFTA, but also an operational framework known as Boosting Intra-African Trade. Both were endorsed at the AU summit in 2012, but only the trade agreement gained significant traction, while the operational plan that would have driven it forward received far less attention.

Skepticism followed him throughout the process. Many African leaders doubted whether a continental framework could work when regional blocs themselves were struggling to deepen trade ties. Kyerematen, however, argued that only scale could unlock Africa's potential. He explained that countries like Ghana often imported basic goods such as sausages from Europe instead of sourcing them from fellow African nations, simply because of trade barriers tied to regional groupings. A continental framework, he insisted, could break down those barriers.

Despite resistance, AfCFTA Eventually came into being and today spans a market of 1.4 billion people with a combined GDP of $3.4 trillion. With Africa holding 60% of the world's arable land, vast water reserves, forests, and mineral wealth, Kyerematen sees the economic case as undeniable. Yet he cautions that trade alone will not guarantee prosperity. For him, Africa cannot be peaceful, secure, or prosperous without political unity and deeper integration.

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He points to Europe as an example: independent states with distinct identities that nonetheless wield global influence through the European Union . He believes that the African Union, in its current structure, should be considered a transitional phase, ultimately paving the way for a "United States of Africa."

Seven years after AfCFTA was signed, however, he admits that progress has been uneven. Infrastructure gaps, unaligned customs reforms, and weak regulatory harmonization remain obstacles. Still, he views the agreement as historic, a foundation upon which Africa can build either a confederation or a federation to unlock its full economic power and geopolitical influence.

Reflecting on past attempts at unity, he recalled how Muammar Gaddafi His call for a "United States of Africa" failed in 2012 because it was rushed and lacked consensus. The lesson, he suggested, is that integration must be gradual, systematic, and built on existing structures.

Kyerematen emphasized that the necessary elements are already in place. AfCFTA has provided Africa with the legal framework, Agenda 2063 offers the vision, and regional economic communities provide the building blocks. However, without prioritizing political unity, he warns, the rest of Africa's aspirations will remain out of reach.

READ ALSO: One Market, 54 Nations: Why Africa's free trade pact is still stalled 7 years after signing

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EU countries scramble to get on the same page ahead of the July 9 trade deal deadline.

The European Union is trying to unify behind a trade deal with the United States as President Donald Trump's July 9 tariff pause expiration looms .

The U.S. is set to levy a 50% tariff on most EU exports, but the EU is hoping to bring that tax down to 10%, with the European Commission saying late this week that they're considering a provisional trade deal with the U.S. to bring it down to 10%.

European Commission President Ursula von der Leyen said on Thursday that she is aiming for an "agreement in principle."

“Indeed, what we are aiming at is an agreement in principle, because [with] such a volume, in 90 days, an agreement in detail, it’s impossible," von der Leyen said.

She added that the commission is preparing in case a deal is unachievable, saying "all the instruments are on the table."

"We want a negotiated solution, but you will know that at the same time we are preparing for the possibility no satisfactory agreement is reached. We will defend the European interest as needed — in other words all the instruments are on the table," von der Leyen said.

European Commission spokesman Olof Gill met with U.S. officials in Washington, D.C., this week, trade talks that yielded at least some progress as they continue into the holiday weekend.

Gill indicated that "progress was made towards an Agreement in Principle during the latest round of negotiations which took place this week" and "the Commission will now re-engage with the U.S. on substance over the weekend."

Treasury Secretary Scott Bessent suggested a deal was possible after meeting with the EU’s trade chief, Maros Sefcovic, on Thursday.

We'll see what we can do with the EU," he told reporters, adding that the U.S. was "going to see a lot more trade deals.

In exchange for the 10% blanket tariff, the EU reportedly wants more time and concessions on the 25% automobile tariff, which is hurting the German automobile industry.

German Chancellor Friedrich Merz has signaled that he wants a "quick and simple" deal.

"It is better to achieve a quick and simple solution than a lengthy and complicated one that remains in the negotiation stage for months," he said.

Merz added that such a deal was needed "to remove the burden of tariffs on our businesses, which are far too high," and revealed that the current talks were "not about a minutely detailed trade deal" but "the quick resolution of a tariff dispute."

Bloomberg reported that any initial agreement would likely be brief and not legally binding, an assessment that arises as the EU seeks additional concessions, including reduced tariffs on pharmaceuticals, alcohol, semiconductors, and commercial aircraft.

The EU has already approved tariffs on $24.7 billion of U.S. goods that can be used in response to the U.S.-imposed metals levies. The tariffs target politically-sensitive U.S. states like House Speaker Mike Johnson's (R-LA) home state of Louisiana and its soybean industry, as well as poultry, other agricultural products, and motorcycles. They've also prepared high tariffs on Boeing aircraft, U.S.-made cars, and bourbon.

TRUMP TO RESUME TARIFFS ON MAJOR TRADE PARTNERS

Trump indicated on July 4 that letters outlining expected tariff rates would be sent to a dozen countries, suggesting it's a "much easier" way to reach trade deals.

"I signed some letters and they'll go out on Monday, probably 12. Different amounts of money, different amounts of tariffs," Trump said without naming the recipients.

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England, performing below par, began their European title defense with a defeat against France.

Defending champions England suffered a 2-1 loss to France in their Euro 2025 opener in Zurich, despite Keira Walsh's late consolation.

Lauren James returned to Sarina Wiegman's starting XI, and England thought they had taken an early lead against the 2022 semi-finalists, but Alessia Russo's effort was disallowed following a VAR review.

Instead, Marie-Antoinette Katoto fired in a 36th-minute opener before Chelsea's Sandy Baltimore doubled France's lead three minutes later.

Late substitutions sparked the Lionesses into life in the closing stages, and Walsh gave them hope by halving the deficit in the 87th minute, but they could not salvage a point.

With England men's boss Thomas Tuchel watching from the stands, James got herself involved inside the first minute, latching onto the ball inside France's penalty area before firing a left-footed effort aimed at the top corner off-target.

Three minutes later the Chelsea forward was darting around the edge of the area, delivering a cross that just missed several England players.

Goalkeeper Hannah Hampton had her first experience of major tournament action when she came out to collect Selma Bacha's free-kick, earning an appreciative round of applause from the England delegation stationed behind her.

Russo thought she had scored after pouncing on the rebound from Lauren Hemp's saved effort, but a VAR check determined Beth Mead had been marginally offside in the build-up to Hemp's initial attempt and the goal was ruled out.

Momentum shifted in France's favor, their efforts inching ever closer as Hampton was forced into a good save, sticking out a leg to deny Elisa De Almeida.

And it was the Paris St Germain defender whose initial midfield interception served as the catalyst for the opening goal, delivering a well-weighted pass to Delphine Cascarino.

San Diego Wave forward Cascarino then sent the ball across the face of goal, where Katoto obligingly tapped in.

Baltimore doubled their advantage three minutes later, Leah Williamson and her Chelsea teammate Lucy Bronze unable to contain the in-form Blues star before she rifled into the top right corner.

VAR ruled – much to Wiegman's visible chagrin – that Russo had not been fouled in the build-up.

The second half got off to a lively start for France, with Hampton denying Grace Geyoro but fumbling her save and having to scramble back just in time to prevent more damage.

James' evening ended after 60 minutes as part of a triple substitution by Wiegman.

The Lionesses appeared to be running out of time and opportunities by the 77th minute when Grace Clinton made her major tournament debut, followed shortly after by Michelle Agyemang's.

But England were suddenly sparked to life, substitute Ella Toone nearly halving the deficit with a deflected effort.

Walsh finally clawed one back after France could not fully clear an England corner, the Chelsea midfielder taking advantage, guiding a shot past Pauline Peyraud-Magnin from the edge of the area to give the Lionesses a fighting chance.

But, while they finally looked a threat, five minutes of added time were not enough to salvage a draw.

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