Notwithstanding some reforms, which appear necessary especially following the experience of the recent financial turmoil and further steps which are needed on the way to a fully integrated euro area financial system, the progress already achieved is highly beneficial for the efficiency and competitiveness of the euro area financial system and will ultimately foster the performance of the euro area economy.
References/background material: Aghion, P., Fally, T. and S. Scarpetta (2007), “Credit Constraints as a Barrier to the Entry and Post-Entry Growth of Firms”, IZA Discussion Paper No. 3237. Cappiello, L., Briefing for the visit of the Conseil Economique et Social (CMT/0208), 18 February 2008. Decressin, J., Faruqee, H., Fonteyne, W., Integrating Europe’s Financial Markets, International Monetary Fund, 2007.