Traditionally, the efficiency of these markets has been hampered by costs associated with the use of multiple currencies. Given the large volumes traded in financial markets, even small transaction costs can produce substantial distortions. The euro has reduced those transaction costs and has improved the efficiency of European financial markets.
In an ever more digitalized and interconnected environment, and even more so when there are international tensions, cyber-risks become particularly significant, including those stemming from the use of third-party service providers, which can threaten the stability of both individual entities and the system as a whole.