In its third report on Financial Integration in Europe, the European Central Bank (ECB) signals that there is a risk that the financial integration process in Europe will slow down as a result of the financial and economic crisis.
This year’s report focuses on the impact of the financial crisis on the financial integration process. Financial integration is of key importance for the European Single Market and the ECB.
The report notes that while significant progress in European financial integration has been made over a longer period of time, signs of retrenchment within national borders have recently emerged in certain financial market segments.
The ECB considers that vigilance should be exercised to avoid a slowdown, or even reversal, of the financial integration process in Europe.