Notwithstanding some reforms, which appear necessary especially following the experience of the recent financial turmoil and further steps which are needed on the way to a fully integrated euro area financial system, the progress already achieved is highly beneficial for the efficiency and competitiveness of the euro area financial system and will ultimately foster the performance of the euro area economy.
Financing is one factor that may hold back R&D in the European digital sector. For instance, intangible investment is difficult to collateralise and therefore harder to finance in a conventional bank-centred financial system like the one prevailing in continental Europe.