Economic integration – in other words, the elimination of trade barriers and the harmonisation of regulations – boosts prosperity. Free trade enables each of us to specialise in what we’re best at. Economies of scale can be harnessed more readily. Plus a bigger market results in greater competition. And this in turn fosters innovative power and productivity.
Beyond that, the largest, most complex firms will face an additional common equity requirement that reflects the risk they pose to the system and an additional layer of loss absorbency on top of that to provide adequate support to operating subsidiaries in resolution.