As regards the post-FSAP strategy, although the ECB is still in the process of formulating its views on the matter, we have already identified at least three important elements. First, the focus should be on the effective and consistent implementation of the FSAP at the national level.
Generally, economists think optimal allocative efficiency is achieved by removing barriers to competition in markets – be they tariffs, subsidies, protectionist devices, unnecessary regulation – and allowing relative prices to allocate productive resources. For most products, competitive markets will deliver the greatest choice at the lowest price to informed consumers. Granted, there are various exceptions to the generalisation above.