The need to proceed with structural reforms in Europe is not confined to the “real” side of the economy, like the necessity to enhance flexibility in the European labour markets, but applies also to financial integration. Financial markets that are not yet fully integrated imply a cost in terms of foregone economic growth.
Furthermore, as a central banker, I am very conscious of the fact that a well-integrated financial system is essential for the implementation of our monetary policy, as it enhances the smooth and effective transmission of monetary policy impulses throughout the euro area.