The advent of the euro initiated a new stage in the economic history of the European Union countries. The introduction of the common currency does not mean that the Economic and Monetary Union is complete - it still lacks a single financial market, which is one of the conditions to its creation. The EU countries want to change this: according to the plans, a common financial market is to take off by 2005.

In 1999, the European Commission presented a paper on the financial services sector, including a plan for introducing changes. According to the paper, the most important measures on the way to a single financial market are as follows:

• providing the European Union with appropriate legal instruments;
• abolishing any barriers still existing in the capital market, so as to reduce the cost of capital in the European market;
• the introduction of appropriate protection for investors;
• tightening the cooperation of the supervising bodies;
• the integration of the financial market infrastructure.

The Financial Services Action Plan (FSAP) lists measures to be taken in order to implement a single financial market, including over 40 laws to be adopted.

Besides the document mentioned above, 2000 saw the publication of the "Initial Report of the Committee of Wise Men on the regulation of the European Securities Markets", the Committee working under the direction of A. Lamfalussy. The report presented an analysis of the current development stage of the European securities market, describing the barriers to its quick and effective integration. In the following year, a follow-up report was released, including a draft plan of a comprehensive reform of the law-making process in the EU financial market.

After many discussions, the main recommendations resulting from the two reports have been approved by the EU. This opens the way to establishing a single securities market, and, in the next step, a single European financial market.