Furthermore, the Lamfalussy process of regulation and supervision, now being extended from the securities field to the banking and insurance sectors, will allow for more flexible and uniform technical regulations. This dynamic process should ultimately produce a genuine common financial legislation and regulation for market players, while respecting the principle of subsidiarity enshrined in the Treaty.
In this regard, the euro is already acting as a catalyst for the development of a fully integrated European capital market. This market will be more efficient and more liquid than the segmented, national markets which preceded it.