7 May 2026

• Financial integration in the euro area has strengthened since late 2022, supported by lower dispersion in euro area asset prices across markets
• Cross‑border activity has increased, supporting risk sharing and resilience, notably in debt markets and interbank lending
• Equity market integration is declining, weighing on investment and competitiveness

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 across…