ECB Council decisions: Independence, climate, digital euro, DLT collateral

The European Central Bank's Governing Council announced a series of decisions in January and February 2026, covering central bank independence, climate risks, the digital euro, and significant changes to its monetary policy operational framework.

Reaffirming independence and embracing digital

The ECB Governing Council made several key decisions in early 2026.

On January 13, it supported a global central bank statement, including President Lagarde, affirming solidarity with Federal Reserve Chair Jerome H. Powell and stressing central bank independence for stability.

The Council adopted its post-2025 climate and environmental plan on January 16, integrating climate and nature-related risks into core operations, with focus on green transition, physical impacts, and ecosystem risks.

A cooperation with the ONCE Foundation was announced on February 18 to ensure universal access to the digital euro app, benefiting people with disabilities.

Furthermore, on January 22, the Council approved legal act amendments for the Eurosystem's monetary policy framework.

These changes notably allow marketable assets issued via Distributed Ledger Technology (DLT) as collateral for Eurosystem credit operations from March 30, 2026, marking a significant step in modernizing market infrastructure.

Strengthening liquidity and financial stability oversight

The Governing Council decided in December 2025 to simplify the remuneration of excess reserves for eligible monetary policy counterparties, ensuring they are always remunerated at the deposit facility rate.

Implementation is planned by mid-2026.

On February 14, 2026, the ECB expanded the Eurosystem Repo Facility for Central Banks (EUREP), introducing indefinite access and broader geographical reach to provide backstop euro liquidity to non-euro area central banks.

The Council also acknowledged two joint ESRB and ECB reports: one on January 20, 2026, on financial stability risks from geo-economic fragmentation, and another on February 6, 2026, on risks from interconnections between banks and non-bank financial intermediaries.

These reports underscore the ECB's focus on a comprehensive view of financial system vulnerabilities.

Adapting to new realities, upholding core values

These varied decisions show a central bank adapting its toolkit to a rapidly changing global landscape.

The ECB is modernizing its operational framework, embracing digital currencies, DLT, and addressing climate and geo-economic fragmentation risks.

This proactive approach, paired with a strong defense of central bank independence, prepares the institution for future challenges.