It is, however, also in these countries where it is often easier for governments to exploit the money-creating powers of the central bank, and where an excessive amount of money is often created to finance government expenditure. Such policies, of course, invariably lead to higher inflation.
I will then present the current state of financial integration in the euro area based on the indicators of financial integration recently published by the ECB. Finally, I will mention some specific activities by which the Eurosystem contributes to fostering financial integration, and I will highlight some topical EU policy issues in the field of European financial integration. 2.