Problems of financial integration in the EU

A drive for financial integration, especially in the field of securities trading, is a very significant feature of EU policy today. This paper makes a critical assessment of the central component in the financial integration strategy, the Commission's Financial Services Action Plan. It is argued that an exceptional degree of political agreement around the strategy has allowed it to succeed in spite of the formidable technical difficulties to which it gave rise. It is suggested, however, that further reformulations of the strategy will be needed, to cope with the aftermath of the recent stock market crash and to link the strategy more closely to EU strategies in the social sphere.