III What is it that prompts sovereign states to follow this basic trend towards economic integration, even if of course it does not always lead as far as is planned for Euroland? Essentially, three more or less major benefits may be derived from any form of economic integration: Firstly, more integration leads to more competition. Competitive pressure enhances efficiency. Secondly, integration changes market structures.
Markets become larger. Enterprises are able to exploit economies of scale. National economies can specialise to a greater extent. Resources are fed into a larger pool, from which they can be allocated more efficiently. And market breadth increases. The consumer can choose from a wider range of products offered. Thirdly, integration reduces information and transaction costs. This applies in particular to monetary integration, too.