Financial integration came to a halt and was partly reversed, as can be seen from the fact that non-bank debt securities were increasingly purchased domestically, with non-domestic euro area holders selling these bonds. (Slide 6) Euro area countries’ financial sectors retreated within national borders.
1  The annual growth rate of real GDP per hour worked in the euro area averaged only 1.3% over the period 1999-2006. 2  See A. Annett (2006) “Lessons from successful labour market reformers in Europe”, IMF euro area policies: selected issues, August 2006.