I see three main benefits in the envisaged micro-prudential framework. First, the power to issue legally binding supervisory standards will allow for the establishment of a single European rulebook. As you will recall, this was an idea of Tommaso PadoaSchioppa, a former ECB Board member. Such a rulebook will help to eliminate the current differences in the national transposition of EU legislation.
The picture for the second driver of dispersion – i.e., differentials in trends – shows lasting differences, with a gradual increase in trend growth dispersion. This picture also differs across euro area countries, some of which persistently exhibit trend output growth either above or below the euro area average.