Let me mention here a study that estimated additional growth - resulting from financial integration of the European bond and equity markets - of 1.1% over a period of ten years.4 Despite all caveats that apply to the model underlying the simulations, this result is impressive.
Having laid down the general economic benefits of financial integration, I would now like to discuss the reasons for fostering financial integration which are specific to the ECB and which explain why we attach the highest importance to this process. First, financial integration has implications for monetary policy.