Competitiveness depends on many other aspects, such as labour and product market regulations, which generally do not fall within the competence of finance ministers. The ministers who deal with these other matters are typically not faced with issues related to the euro area. And all Council formations in the EU meet in full composition only, i.e. at the 27-member level.
When regulation is tightened in one area, incentives are put in place for other intermediaries to step in. When certain business activities are pushed out of the banking sector, it does not necessarily mean that the risks for financial stability increase, but nor does it mean that these activities will not pose risks if they are handled by other market participants.