Summary
- This is the first in a series of articles about the European elections that looks at the political dynamics in each of the EU’s 27 member states, offering insights into those MEPs who are shaping crypto policy.
- Mid-sized Member State Austria has some prominent MEPs in influential roles, but they haven’t yet pursued a prominent role in any major crypto-related legislation.
- In general, Belgium has more clout in the digital assets realm than its small number of parliamentarians would suggest. Among its MEPs is Assista Kanko, the Civil Liberties committee (LIBE) rapporteur and lead negotiator on the Transfer of Funds Regulation, the EU law implementing the FATF ‘travel rule’.
What does crypto need to know about the European elections?
In the rapidly evolving political and regulatory landscape of cryptocurrency and digital assets, Europe stands at a crossroads, with its politicians playing a pivotal role in shaping the future of this innovative sector. As the European Parliament (EP) elections draw near, understanding the stance and influence of its members (MEPs) on crypto regulations becomes increasingly important.
This series delves into the profiles of MEPs who have shaped crypto policy over the past term. It provides a country-by-country overview ahead of the election, offering insights into each of the EU Member States’ political make-up within the EP. It also forecasts the relative size and stature of various political groups and delegations within the EP, and offers analysis about the views and potential impacts on policy affecting the crypto industry and digital assets.
This first article looks at Austria’s cautious approach towards, and Belgium’s active engagement with, crypto. Subsequent posts will look at two to three Member States at a time, exploring how their MEPs are contributing to the discourse on digital assets, setting the stage for how the EU approaches crypto in the next legislative cycle.
Austria pursues a cautious line on crypto
Austria currently has 19 MEPs (from a total of 705), with the biggest delegation (seven MEPs) sitting in the center-right EPP group. Austrians will elect 20 MEPs in June’s European elections, gaining an additional seat as the total number of MEPs rises to 720 in 2024.
Arguably, Austria’s most influential and prominent MEPs in recent years have been veterans, such as first vice-president EPP MEP Othmar Karas and Socialist & Democrat (S&D) MEP Evelyn Regner. Elected in 1999, Karas is not running for re-election, which brings renewal but loses experience.
None of the Austrian MEPs have taken a prominent role (rapporteur or shadow rapporteur) in any of the major crypto-related files, perhaps implying digital assets are not yet a prominent political issue in Austria.
This may not change in the short-term, with immigration and identity politics expected to be the largest feature of campaigning, reflecting the increasing assertiveness of the country’s far-right movement.
Perhaps the biggest ‘known unknown’ as Austrians go to the polls will be the number of MEPs the Freedom Party of Austria (Freiheitliche Partei Österreichs) will win. It currently has three MEPs sitting in the Identity & Democracy group. But the party is leading the polls with 30%, which would likely see its delegation increase.
Belgium is more active in the crypto space
Belgium has 21 MEPs, distributed evenly throughout the political spectrum. This is perhaps unsurprising for a federal country with three official languages, familiar with broad, cross-party government coalitions, and home to many EU institutions in its capital, Brussels. Belgians will elect 22 MEPs in June, as Belgium, alongside 11 other Member States, including Austria, will gain additional representation to reflect a revised distribution of seats based on updated census data.
With several prominent Belgian MEPs being members of committees important to digital assets in the outgoing EP, it will be interesting to see if the country punches above its weight again on these issues in the next European Parliament.
Well-known Belgian MEPs include the country’s former prime minister, Guy Verhofstadt, an MEP since 2009 and an ardent European federalist, Philippe Lamberts, co-president of the EP’s Green group and a member of the Committee on Economic and Monetary Affairs (ECON), and Johan Van Overtveldt, a former Belgian finance minister and chair of the EP’s budget committee (as well as also being a member of ECON).
From a crypto perspective, the most prominent MEP in this EP has been Assista Kanko, vice-chair, European Conservative and Reformist (ECR) group. Kanko was the Civil Liberties committee (LIBE) rapporteur and lead negotiator on the Transfer of Funds Regulation, the EU law implementing the FATF ‘travel rule’.
As things stand in the polls, it looks like the far-right, Flemish nationalist party, Vlaams Belang (translation: Flemish Interest) (Identity and Democracy group), could finish first in the north of the country, potentially securing 25% of the vote, doubling its number of MEPs to six.
Also expected to do well in the north is the nationalist Nieuw-Vlaamse Alliantie (New Flemish Alliance) (ECR group), which is currently polling at approximately 20%.
Bulgaria has a presence in crypto policy-making
Bulgaria has 17 MEPs, with the EPP delegation representing the largest (seven MEPs). In the outgoing EP there were no Bulgarian MEPs who were full members of the ECN committee. However, there was one substitute member for each of the two largest parties: Eva Maydell (EPP) and Sergei Stanishev (S&D).
Stanishev is vice-chair of the Foreign Affairs Committee, and as such, not focussed on ECON-related issues. For her part, Maydell has been more active on files of relevance to digital assets and crypto. This has been both in her role as full member of the Committee on Industry, Research and Energy (ITRE), where she was rapporteur for the opinion on the Artificial Intelligence Act, and as shadow on the European Strategy for Data, as well as on ECON, where she was shadow on opinions on the Digital Markets Act and Digital Services Act.
Other noteworthy positions held by Bulgarian MEPs include vice-chair of the Renew group (Iskra Mihaylova), vice-chair of the EU/UK Parliamentary Partnership Assembly (Tsvetelina Penkova S&D), and vice-chair of the Civil Liberties Committee (Emil Radev, EPP).
In terms of the latest polls, it seems the EPP-affiliated Citizens for European Development of Bulgaria (GERB) will most likely win, having consistently polled at approximately 26% for the last 12 months. Such a result would likely see it retain its seven MEPs. Two new, unaffiliated parties are currently polling second and fourth respectively: a liberal-conservative coalition called We Continue the Change & Democratic Bulgaria (17%) and the far-right Revival (13%). Sandwiched between the two (14%) is the Renew-affiliated Movement for Rights and Freedoms (DPS).
