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Internal Market and Services Commissioner Michel Barnier said "The policies analysed in this report are our best instruments to exit the crisis. Our reform agenda addresses the "too big to fail" question and is creating a more resilient and integrated European market in financial services. It is imperative that our financial sector is in a position to support the real economy and establish the basis for long-term growth”.
Overall, the report shows that despite improvements, the financial crisis continued to exert a significant impact in holding back economic growth in 2012.
More specifically, this year's report:
Background
In 1999, a single financial market in which funds could flow and market participants could trade freely across EU borders was a distant dream. Since then significant developments have been achieved. European financial institutions and markets have become more interdependent. Market dynamics have forced further adjustments from regulators and supervisors. Old ways of organising financial regulation and supervision were called into question, and cross-border risk transmission channels intensified.
In this regard, the Commission recognised the need to regularly monitor developments in the EU financial sector. For this purpose, until 2009 it published the European Financial Integration Report. It reported on market and policy developments presenting indicators on financial integration, efficiency, stability and competitiveness.
The financial crisis has demonstrated the need for an additional focus on financial stability issues. Responding to these developments, a revamped “European Financial Stability and Integration Report” was established in 2010. EFSIR now also reports on new policy measures that are laying the basis and groundwork to continue developing a truly integrated European financial market.