Moreover, a substantial proportion will take the form of intra-firm transactions, through the internal markets of globally-significant financial institutions. Internal trade within these institutions can be highly valuable as a mechanism to deliver international risk sharing. However, effective regulation of these firms will require continued collaboration between UK and EU regulators (in partnership with other global regulators).
Although a breakup scenario cannot be ruled out for the EMU, long-held integration efforts are a guarantee of the common willingness to find solutions to problems. CEE countries are in an advantageous position since they have time to continue pondering the net benefits of joining the euro area while, at the same time, they can further integrate their economies with Western Europe.