Of course, these findings cannot be applied exactly to Europe. Moreover, deregulation and the removal of legal barriers is a necessary, but not a sufficient, condition for more integration, as there remain other obstacles, not least those of a prudential or tax nature.
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.