Abstract To achieve the goals of the 2030 Global Biodiversity Framework, the European Biodiversity Strategy, and the EU Green Deal, biodiversity monitoring is critical. Monitoring efforts in Europe, however, suffer from gaps and biases in taxonomy, spatial coverage, and temporal resolution, resulting in fragmented and disconnected data. To assess user and policy needs in biodiversity monitoring, we employed a four‐step user‐centered stakeholder engagement process with over 300 stakeholders including a public stakeholder workshop, online survey, interviews, and a meeting with experts from 18 EU member states, the European Commission, and the European Environment Agency. The stakeholders identified policy needs, current challenges, and potential solutions. Based on the policy and stakeholder assessment, we recommend establishing a European Biodiversity Observation Coordinating Centre to optimize existing observation efforts, harmonize data, and enhance our ability to predict and respond to key challenges related to biodiversity loss in Europe.