A bigger market makes it more attractive for any potential entrant to compete in it. And more intense competition spurs innovation. In the long run, innovation as a result of increased competition is the main reason why market integration raises welfare.2, 3 But for newcomers to be able to challenge incumbents, they must not trip over red tape.
Mario Draghi: Measures for the protection of savings and the regulation of financial markets Testimony of Mr Mario Draghi, Governor of the Bank of Italy, at an inquiry into matters relating to the implementation of Law 262/2005, before the Sixth Standing Committee of the Italian Senate, Rome, 26 September 2006. * 1.