However, it is widely observed that the perspectives and strategies of European equity analysts have changed, toward a de-emphasis on country-specific factors and greater attention to industry and company factors in the valuation of stocks (Adjaouté and Danthine, 2002). This change indicates that financial market participants see increased financial and economic integration in Europe as an irreversible trend.
Efforts to adhere to the Lamfalussy Process, which aims to streamline the harmonization process for financial market legislation and regulation, should hasten the integration of European securities markets. European finance has traditionally been bank-centered. What will happen to banks in the new regime?