Because sometimes the discussion focuses on the largest economies, let me mention that when looking at the four largest euro area economies, their growth differentials have been much lower, with a standard deviation fluctuating around a level of 1 percentage point.
In this connection, we have to bear in mind that the recent tightening of banking regulation through Basel III and the envisaged rules governing SIFIs create new incentives to offshore business to the unregulated areas of the financial system. 5.