Nevertheless, the general and practical message of the evidence available is clear: if we further pursue financial integration in Europe, we can realistically expect significant tangible benefits in terms of higher productivity and economic growth. III. Improving the functioning of the European financial system  The good news, the second piece of good news, is that this message is better and more widely understood.
The result has been rules which are now viewed as complex and opaque, with little evidence that they have delivered a more countercyclical fiscal policy stance in the euro area.6 The Stability and Growth Pact has limited flexibility and does not lend itself to incorporating areawide stabilisation elements. National fiscal rules, with a focus on domestic issues, tend to neglect positive cross-border spillovers.