It depends upon the notion that a shortage of public infrastructure is the binding constraint on productivity growth in the private sector, which as I have already mentioned is not axiomatic.
There are some academics, however, who argue that the single market in goods and services may in time make local shocks more likely by increasing regional specialisation.2 If this is correct, completing the single market in capital becomes even more essential for the euro area: the greater the risk of local shocks, the greater the need for shock absorption through capital markets.