But of greater concern is the longerterm impact that electricity supply constraints have on potential output growth, as forwardlooking investment plans are delayed or even shelved because of the lack of guarantees of electricity supply. This constraint has contributed to the decline in our estimate of potential output growth to 1,8 per cent.
More generally, the ECB welcomed the extension of the Lamfalussy approach to regulation and supervision to all financial sectors.5 The ECB Governing Council also provided its view on the European Commission’s recent review of the Lamfalussy process.6 These are further important examples of where we have contributed to financial integration by giving advice to the shaping of the legislative and regulatory framework of the financial system.