In fact, financial integration is a key factor in the development and modernisation of the financial system, which, in turn, increases the potential for greater and more sustained noninflationary economic growth. I will give here a direct answer to the question you posed in the first round table discussion this morning concerning the possibilities of enhancing sustained economic growth in Europe.
It is generally accepted that financial integration fosters financial development and, ultimately, economic growth. Financial integration allows for economies of scale and increases the supply of funds for investment opportunities. It also fosters competition and the expansion of intermediation and  1  See Second progress report on TARGET2, ECB press release dated 21 October 2005, available from the ECB website.