*  *  Development and integration of financial markets in the euro area  The introduction of the single currency has given a decisive impetus to financial integration in Europe. The integration of the money market has been rendered possible by the creation of TARGET, the European payment system.
The launch of the new-generation system based on a single platform is scheduled for 2007. The euro has had a particularly significant impact on the European market for private-sector bonds; there has been a considerable increase in the number of even medium-sized firms placing issues outside their home country. The home-bias of equity portfolios has diminished.