There are clearly challenges to managing much larger, more diversified firms, as well as benefits. This business strategy is surely not for all financial services firms. Business Conditions Necessary for Financial Conglomerates to Succeed The difficulties associated with operating a financial conglomerate are suggested by the business conditions that are necessary for such a conglomerate to succeed.
As a primordial prerequisite for the monetary union and considering the above-mentioned time inconsistency issues, the Treaty is the appropriate place for defining the major objective of the ESCB. In order to further clarify this target, the Governing Council of the ECB defined price stability in October 1998 as: "[…] a year-on-year increase in the HICP for the euro area of below 2 %".