The Commission's second annual report - Financial Integration Monitor 2005 on the state of integration in EU financial markets shows the potential economic benefits which can accrue from further integration in the new Member States and in the sector of retail financial services. In addition to highlighting general trends affecting in financial markets, this year's study has particularly focused on areas at the forefront of the political debate: the entry of ten new Member States just over a year ago and the integration of the EU retail financial markets. Along with the Green Paper for Financial Services Policy, the FIM report provides input for the ongoing policy debate.