Financial markets The first area I want to discuss are financial markets. There is ample evidence that financial markets have some way to go before national demarcation lines will effectively disappear. Henceforth, there is still a significant potential for further financial market integration in the euro area.
Distortions can therefore originate from both sides, as indeed happened in the run-up to the current crisis. Capital has not always been put to its most productive use. And structural rigidities have hampered adjustment through a shift from the non-tradable to the tradable sector, and curbed growth potential.