Euro area stock markets integration: Empirical evidence after the end of 2010 debt crisis

The Euro Area faces plenty of financial and economic asymmetries on account of the dissimilar economies' participation in the union. The long-term financial integration of the EA member-states constitutes a significant task for the EU policy makers in business and economic terms. This letter investigates the degree of stock markets integration in the Eurozone after the end of 2010 debt-crisis. The results reveal that the stock market integration be strong between Germany and EA core member-states but disparate for the EA periphery. In contrast, there are only indications regarding the EA Eastern Mediterranean and Baltic stock markets integration with DAX-30.

Automated summary

The integration of stock markets in the Eurozone shows discrepancies after the 2010 debt crisis, with strong integration between Germany and core member-states, but disparities in the peripheral countries.