The deficiencies of the European institutional framework in these key areas have, it is now clear, played a key role in destabilising European financial markets. I will return to this shortly, but first, a brief overview of developments. The first ten years: swift progress towards euro area financial integration Financial markets progressed steadily towards integration in the years following the introduction of the euro.
Let me show you some indicators that demonstrate the degree and pace of convergence in different market sectors. 2  BIS central bankers’ speeches  The money market was the financial market segment that was the most integrated prior to the crisis. Slide 2 illustrates how quickly, and almost completely, money market rates converged following the introduction of the euro.