The Eurosystem has argued from the outset that the harmonisation of standards and rules for retail payments is necessary to overcome the current fragmentation of payment instruments and infrastructure in Europe. Giving greater choice to European businesses and consumers, and opening up a larger market to payment service providers, will boost competition.
According to the so-called 'optimal currency area' theory, factors of production – labour included – should in principle move flexibly within the euro area. This is not the case, even though there are no formal limits on migration within the euro area. Rigidities of mobility manifest themselves in varying degrees of unemployment in EU countries.