The EU Council has formally launched a consultation with the European Central Bank (ECB) on the 'Digital Omnibus' proposal, a legislative package aimed at simplifying and amending the General Data Protection Regulation (GDPR), the Data Act, and the ePrivacy Directive. The consultation, published on 2 November 2026, seeks the ECB's opinion on aspects of the proposal that fall within its monetary and financial stability competences, particularly amendments to the Data Act concerning data sharing in financial services.
Document Details and Scope The consultation document, issued by the Council's General Secretariat, outlines a broad objective to reduce regulatory fragmentation and compliance costs for businesses operating across the EU digital single market. The Digital Omnibus proposes targeted amendments to the GDPR (Regulation 2016/679), the Data Act (Regulation 2023/2854), and the ePrivacy Directive (2002/58/EC), while repealing overlapping or outdated instruments. The Council's request to the ECB focuses on provisions that could impact payment systems, financial data access, and central bank oversight.
Policy Orientations and Trade-offs The proposal reflects a tension between streamlining digital rules and maintaining robust protections. On one hand, the simplification aims to lower administrative burdens for small and medium enterprises (SMEs) and foster innovation in data-driven sectors. On the other hand, consumer and privacy advocates have raised concerns that amendments to the GDPR could dilute individual rights, such as consent requirements and data portability. The ECB's input is expected to address potential risks to financial stability from expanded data-sharing obligations under the Data Act.
Impact on Stakeholders - EU businesses, especially SMEs: The simplification could reduce compliance costs related to overlapping data governance rules, potentially boosting competitiveness. However, firms in the financial sector may face new data-sharing requirements that increase operational complexity. - EU consumers: Streamlined rules may lead to more consistent data protection across services, but any weakening of GDPR provisions could reduce privacy safeguards. - National data protection authorities: Amendments to the GDPR could alter enforcement mechanisms, potentially shifting the balance between national oversight and harmonised EU rules. - European Central Bank: The consultation gives the ECB a direct role in shaping financial data governance, reinforcing its influence over digital finance regulation.
Institutional Follow-up The ECB has three months to deliver its opinion, after which the Council will consider the feedback before proceeding with negotiations. The European Parliament is expected to begin its own examination of the Digital Omnibus in early 2027, with trilogues likely later that year. The proposal marks a significant step in the EU's ongoing effort to recalibrate its digital rulebook for the next decade.
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