Financial market fragmentation in the Euro area

LINK TO THE POLICY PAPER ENGLISH

Henrik Enderlein and Paul Berenberg-Gossler describe differing degrees of financial market integration in the Euro area, identifying a clear pattern of disintegration on the aggregate level, as well as in the most important financial markets, after the Euro area crisis. They show that fragmentation has declined since 2012 but the situation is still fragile. Further, the researchers identify the main factors for financial fragmentation and close with some policy proposals, necessary for completing the European economic and monetary Union.