However, its use by the private sector as an investment and financing, a payment and vehicle currency is pivotal. The introduction of the euro accentuated the integration of European capital markets and the trend towards securitisation and the associated disintermediation of the banking sector. The euro also acted as a catalyst in diversifying European portfolios away from local-market-based to euro-based issues.
Developments in the international financial markets show that the euro quickly established itself for new issues.