Indeed, much of the ongoing financial integration process has been policy-driven – for example, the introduction of the euro or the implementation of single market legislation (FSAP).
First things first: the Eurosystem staff macroeconomic projections presented give no cause for concern over the development of the euro-area economy. In fact, they confirm the view that the steep drop in energy prices is supporting the recovery of the euro area’s economy. The lower energy prices also go a long way towards explaining the expected evolution of consumer price inflation.