Financial markets The first area I want to discuss are financial markets. There is ample evidence that financial markets have some way to go before national demarcation lines will effectively disappear. Henceforth, there is still a significant potential for further financial market integration in the euro area.
Financial market integration has been driven by global developments, such as advances in information technology, falling communication costs and standardisation of products. It has also been supported by European Commission initiatives. A main policy initiative that has contributed to financial market integration is the Financial Services Action Plan.