Euro area financial integration improves despite persistent fragmentation, ECB report shows

Financial integration in the euro area has improved markedly since late 2022, reflecting resilient market functioning and progress across bond, equity and banking markets, according to the European Central Bank (ECB)’s latest report on Financial integration and structure in the euro area, published today. Price‑based and quantity‑based indicators of financial integration have risen to levels above their historical averages, underpinned by a sustained decline in redenomination risk premia and supported by EU‑level policy initiatives such as the Next Generation EU programme. Cross‑border activity has increased ... (full story)