This last point is another example of where advancing towards a single market in capital would be beneficial for the euro area – it would not only help strengthen capital markets relative to banks, but also help strengthen equity funding relative to debt.
This would also have positive structural effects for the euro area: cross-country integration through equity improves risk-sharing and, as it is harder for investors to “cut and run”, would most likely provide more resilience in a crisis than integration through interbank lending and fixed income investment.