Financial markets in the European Union are becoming more integrated, allowing for easier movement of money and services. This integration can lead to faster economic growth, but also carries risks like financial crises. Proper regulation is needed to prevent these risks. The EU has become a stronger business partner due to increased financial integration, attracting more investments from both within and outside the EU. However, if economic policies are not aligned, financial integration can lead to negative effects like increased chances of crises and recessions. It's important to balance market development with institutional growth to ensure stability.