But it is important to acknowledge the huge benefits of European integration for our daily lives and day-to-day business. Greater financial integration is a key part of building the single market – and something that improves the functioning of national financial systems.
Financial integration leads to better risk-sharing and diversification, it makes markets deeper and more liquid, and it encourages competition, which in turn reduces the costs of intermediation. In addition, financial integration fosters more efficient allocation of capital, higher productivity, and stronger and more sustainable non-inflationary economic growth.