This spring, the European Commission released the Green Paper on Financial Services Policy, which looks ahead to the period up to 2010. It aims primarily at consolidating and simplifying the existing Community legislation, while ensuring that the measures adopted thus far under the FSAP are effectively and consistently implemented and enforced at the national level.
However, these informational restrictions do impose limits on social insurance and redistribution, and so may well affect societal preferences over aggregate outcomes. 10  I’m assuming that the government has access to affine taxes, so that potential budget imbalances can be solved through an appropriate choice of an intercept for the tax system (as in Werning 2007).