They are a natural product of the continuous readjustment of relative prices and quantities in a market economy. At the same time, the persistence of differentials across the euro area is a matter that needs to be addressed. To some extent, this is a reflection of deep-seated structural inefficiencies, such as nominal and real rigidities in labour and product markets.
Cross border collective investment schemes will be able to reach a wider investor base, leading to economies of scale. Increased competition will bring innovations and ensure that investment products more closely reflect the needs of retail investors. BIS central bankers’ speeches  1  5. Individual countries will benefit from more efficient, more liquid, broader, and cheaper capital markets.