In this regard, what is the role of public policy? In my view, there are two major areas where public policy action can contribute to more-effective financial integration. The first relates to the need to remove remaining legal or regulatory barriers. The second involves responding appropriately to the new challenges raised by a more financially-integrated environment.
Regarding the need to remove existing barriers, the need of action in this area has been recognised at the highest political level. Successive European Councils have declared the integration of EU financial markets as a high priority of economic reform in the EU.