Officials estimate the Business Wallet, whose digital authentication and other aspects would duplicate those already made available by Estonia's e-state, would cost the country €150 million.

The European Business Wallet aims to reduce paperwork and free up time for innovation among EU companies, and comes as part of the European Commission's 2025 Work Program.

Investigative weekly Eesti Ekspress wrote that European Commission Vice-President Henna Virkkunen announced in November that the business wallet would save companies at least €150 billion a year.

According to Virkkunen, the solution would allow companies to identify themselves securely and in a user-friendly way and exchange data across borders.

Estonian officials quickly reviewed the proposal, finding instead that the ambitious initiative could cost Estonia €150 million. Two weeks later, Pakosta, who had traveled to Brussels, announced that Estonia does not support taking on the proposal.

"We are an advanced digital state; we have authentication tools and a functioning business register. And the EU already has a fully developed ecosystem for exchanging information," said Tõnu Grünberg, Deputy Secretary General at the Ministry of Justice. "And now, bang, something comes along that we would have to pay more than €150 million for in Estonia."

In the Commission's view, joining the wallet is meant to be mandatory for all public sector institutions, and it was precisely this point that raised the most red flags in Estonia.

Ave Schank-Lukas, head of the European Commission Representation in Estonia, meanwhile said that Virkkunen's business wallet would not duplicate existing systems but rather complement them.

The European Commission says the proposed regulation would create a harmonized digital solution valid across the entire EU and would enable secure identification, authentication, and data exchange between businesses and public authorities. Companies would be able to digitally verify identities, store and share trusted documents (e.g. licences and certificates), and sign or seal documents.

The system would allow businesses to delegate legal authority and communicate securely with authorities through one single digital channel and would allow fully remote administrative actions, reducing travel costs and simplifying cross-border operations. The initiative builds on the existing EU Digital Identity Wallet technical framework.

The Commission says estimated savings include up to €5 billion in administrative costs by 2029 and at least €160 billion annually for businesses, with adoption voluntary for companies but mandatory acceptance by public authorities.

--

Follow ERR News on Facebook and X and never miss an update!