This again underscores the importance of European rather than national governance arrangements in a European banking market. How can we achieve a single market in capital? This discussion reveals that there is still some way to go to build a genuine single market in capital in Europe, both in terms of allocation and diversification.
This is not about reverting to the pre-crisis situation: this is about rebuilding the system as it should have been to avoid the crisis. It also reveals that having such a single market would be extremely beneficial for the euro area, if not indispensable.