European Central Bank Vice President Luis De Guindos called on Monday for a capital markets union to reverse the slowdown in financial flows within the eurozone.
“What we have seen is that financial integration, financial flows between the countries of the eurozone have declined,” he said.
“Financial integration is very important and in some ways it has lagged behind economic integration,” he added.
Mr de Guindos’ comments come days after former ECB chief and ex-Italian prime minister Mario Draghi also recommended that the capital markets union become a reality in a report on the competitiveness of the European Union.
Mr de Guindos also said the ECB expected the inflation rate to hover around its 2% target by the end of next year, although service price increases in the eurozone remain high and are currently the ECB’s main concern.
