The European Commission has published the European Financial Integration Report for 2009. The report contains an annual analysis of the integration in the EU financial sector and its impact on competition, efficiency, financial stability and global competitiveness of EU financial markets.

The report addresses how the global financial crisis has affected financial integration and it answers questions such as:

  • Whether EU financial integration will continue advancing once financial stability has been restored (chapter 2).
  • How has the financial crisis impacted on EU financial sector profitability and efficiency, what is the expected impact over the medium term and how does Europe compare to the United States in terms of financial sector efficiency (chapter 3).
  • Whether the EU financial sector has in fact started to recover from the crisis (chapter 4).

Broadly the report concludes that whilst the financial crisis has highlighted the need to reform the system to keep pace with financial globalisation, the level of financial integration is particularly high within the EU. It also notes that throughout 2009 the objective has been to more effectively monitor cross-border risks throughout the EU, in particular related to large cross-border entities, with a view to promoting efficiency as well as stability. Initiatives have also been taken to ensure that remuneration structures are commensurate with risks, that capital buffers are strengthened and are of a sufficiently high quality, that standardisation and transparency are enhanced at the derivative markets and that regulatory gaps of all other important financial segments are addressed.

View European Financial Integration Report 2009, 7 January 2010