EU digital identity and electronic IDs - Overview on the latest legislative developments

A trusted and secure European eID - Regulation July 2021

Digital identity that is accepted and recognised across the EU has been recognised as a key element for the EU’s digital single market strategy. The impact of COVID-19 on the digitalisation of services in all areas has further highlighted the need for citizens to be able to use online identification that is simple, secure and can be used across Europe. The European Commission has therefore chosen to expand the existing Regulation on electronic identification and trust services for electronic transactions in the internal market (eIDAS Regulation) in June 2021, establishing an EU-wide obligation for Member States to produce European Digital Identity Wallets including national electronic IDs (eIDs) that can be used for a variety of services.

This is intended to drive the EU’s digitalisation agenda further across retail payments, digital finance, health and other sectors. For businesses, this means that where identity authentication is required, the new eIDs could help reduce the costs of authentication, allowing for a more standardised EUwide process and reducing obstacles to the cross-border provision of services.

European Digital Identity Wallets

The new European Digital Identity Wallets will include national digital identities as well as “proof of other personal attributes”. (i.e. a person’s driving licence, a bank account, professional qualifications and more).

EU Member States as well as governmentrecognised private providers will offer citizens and businesses digital wallets linked to their national eIDs with proof of other personal attributes.

Qualified trust services

The proposal expands the scope of qualified trust services to include: • • •

the provision of electronic archiving services; electronic ledgers; and the management of remote electronic signature and electronic seal creation devices.

The new framework impacts and introduces obligations for a variety of market participants: Citizens

Large online platforms

Private service providers

eID and authentication industry

Citizens that opt to make use of eIDs and European Digital Identity Wallets will be able to use the same tool for authentication across a variety of services (i.e. use their wallet for the purposes of joining a bank, whilst also using it to authenticate their identity when voting).

All large digital platforms (more than 45 million users) are required to accept European Digital Identity Wallets for their user authentication.

Private parties providing services, such as financial services, transport, telecommunications and healthcare, where strong user authentication is required by law, are also required to accept European Digital Identity Wallets.

This will allow such businesses to better service cross-border customers, with a common identity authentication method for onboarding.

Obligations and requirements for the industry partners that will support governments with eIDs and European Digital Wallets have not been agreed upon at this stage.

There is still a great deal of room for businesses to play an active role in the formation of the rules that will govern third party providers that are part of national eIDs and wallets.

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Lookahead: 3 June 2021

European Commission adopts eID Regulation

2 August 2021

Deadline for feedback on the Commission’s consultation on the adopted proposal

H2 2021

European Parliament and European Council complete first reading of the proposal, voting on a final negotiating position

H1 2022

Political trilogues take place

Summer 2022

Potential compromise agreement and ratification of final text

Get in touch...

In parallel to the ordinary legislative procedure, Member States will be preparing a Toolbox for the effective and harmonised implementation of the new electronic identification regime across the bloc, which will include the overarching technical architecture on which the various national eID schemes will be based on.

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If you would like to speak to us about this document or how we can support your organisation, please contact a member of the EU Public Affairs team: Helena Walsh Managing Director – EU Public Affairs +32 (0)2 612 8152 Helena.Walsh@cicero-group.com Jörn-Jakob Röber Director, EU Public Affairs (Financial Services and Digital) +32 (0)2 612 8163 Jorn-Jakob.Rober@cicero-group.com Alexandros Nikolaidis Senior Account Manager (Financial Services) +44 (0)20 7665 9539 Alexandros.Nikolaidis@cicero-group.com

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