This requires in particular two elements: developing cross-border capital markets offering a real alternative to banks’ financing; and ensuring that banks are able to operate smoothly across borders and to undergo mergers and acquisitions without any national bias.
In this context, let me also focus on what is often referred to as the plumbing of the financial sector, that is, the Single Market for payment and cross-border securities settlement. Harmonisation is key to ensure that both the Single Market and the single currency function smoothly. The ECB has delivered an important contribution in this regard.