Henrik Enderlein and Paul Berenberg-Gossler, director and affiliate fellow at the Jacques Delors Institut – Berlin, our office in Germany, 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.

This policy contribution was prepared for the Committee on Economic and Monetary Affairs of the European Parliament (ECON) as an input for the Monetary Dialogue of 26 September 2016 between ECON and the European Central Bank.