However, although the public authorities can, and must, provide an adequate framework conducive to financial integration, financial integration is ultimately a process driven by market forces and decisions taken by the private sector. In my view, policies relating to the regulatory and supervisory framework should also be complemented by and closely coordinated with other policies relevant to financial services, in particular competition policy.
Bank of Greece research also indicates the important role of public investment in boosting business investment. Higher public investment is expected to have a favourable effect on aggregate demand and total productivity in the private sector and to create incentives for investment initiatives.