There are two aspects to this question: first, whether the current framework may be an obstacle to further financial integration. Bankers often see the decentralised institutional set-up in Europe as a major hurdle to efficient cross-border operations. Much has already been done to alleviate the concerns, though perhaps not to the extent some of you would have wished.
In the services sector, for example, the share of firms reporting demand as a factor limiting business remains close to historical lows. A tight labour market, in turn, increases the bargaining power of workers in an environment in which wages are already expanding at a historically high pace.