[30] For instance, there is evidence that capital relief measures at the height of the COVID-19 pandemic increased the effectiveness of targeted longer-term refinancing operations in supporting the flow of bank credit to the real economy. [31]  Chart 25 Evolution of CET1 ratio and capital requirements (percentages)  Sources: ECB supervisory reporting and ECB staff calculations.
As the four freedoms of the Single Market were put in place, the far-reaching economic linkages among EU countries were making independent economic policies more and more difficult. In particular, fluctuating exchange rates were regarded as detrimental to internal trade. It was just a logical step to irrevocably fix exchange rates between the EU countries and introduce a single currency.