jobs that are below their qualifications. countries that lose labour, are deprived of an active labour force, and pressures can aggravate differences in salaries. in the receiving countries, in contrast, employees often reject newcomers as competitors that are willing to work for considerably lower pay. long - term advantages may nevertheless greatly benefit all parties. economic growth in the receiving country accelerates and over time, the salary levels of old employees in the competed sectors also increase. an important factor in the present migration movement is also that the emigrants are more likely to return home than earlier. recent evaluations show that nowadays most emigrants will eventually return home, bringing with them improved skills and accumulated wealth, with which they facilitate economic development in their home region. it is evident that a broad migration in both directions will significantly contribute to improvements in productivity and economic activity within the eu. it will improve the level of education, the transfer of know - how from country to country and networking. these matters must be taken seriously and must be emphasised, even when faced with the problems associated with migration. for the sake of balance it is, of course, important to aim at relatively modest net migration flows. it is evident, for example, that population ageing will affect all eu countries ; it is unlikely that any of them will be able to handle the challenge primarily by attracting young population from other eu countries. migration is – and of course has to be – primarily market - driven. to the extent that changes in the production structure seem unavoidable, they should not be retarded through economic policy ; rather, support should be provided in the event of problems caused by these changes. problems in the transition period must also be acknowledged, but the advantages generated as a result of the changes should be emphasised. member states and the european commission have already provided wide support to the free movement of labour by removing obstacles that limit migration and introducing active measures that facilitate migration. support should be channelled to workers rather than work places. re - education as well as occupational and geographical support and security in connection with migration are key measures that governments should take in order to facilitate the reallocation of labour force. the ecb and other central banks within the eu can enhance the regional and professional allocation of labour force by improving the integration and efficiency of financing markets and payment systems throughout the area. this development work must naturally be shared by governments. to conclude, there still remains much to be done to improve the situation.

] as a result, many large and complex financial institutions appear to have benefited from cheap funding, thanks to such too - big - to - fail expectations. 9 cheap funding which is insensitive to balance sheet risks may easily spur risk - taking, especially when banking competition gets tougher. sheer ignorance by bank managements of the true risks may also have played a role. 10 [ slide 9 – market discipline vs. structure of banks – a “ chicken - and - egg ” problem to be solved ] the too - big - to - fail assumption weakened market discipline, as did the opacity of large, complex financial institutions. as a result the banking sector has not been renewed or restructured in a way that might have happened in a world with efficient market discipline. inefficient business models have not been outdated in the same way as they have been done in the corporate sector, where the conglomeration trend of the 1980s reversed already some time ago. the market indications of a diversification discount appear to be too weak. 11 the challenge at hand is thus to implement regulatory reforms and policies which help steer the financial sector and banks towards a size and structure, which in a better way support economic growth while maintaining financial stability. no one really knows what the right size this refers to the era which is known as the great moderation. see e. g. borio ( 2003 ), “ towards a macroprudential framework for financial supervision and regulation? ”, cesifo studies, 49 ( 2 ) and the june 2013 imf - report “ key aspects of macroprudential policy ” on work to be done in the field. davies & tracey ( 2014 ), “ too big to be efficient? the impact of implicit funding subsidies on scale economies in banking ”, journal of money, credit and banking ( forthcoming ). rajan, r. ( 2013 ), a step in the dark : unconventional monetary policy after the crisis. andrew crockett memorial lecture, bis, 23 june 2013. laeven and levine ( 2007 ), “ is there a diversification discount in financial conglomerates? ”, journal of financial economics 85 ( 2 ). bis central bankers ’ speeches of the financial sector or banks is. but at least what we can do is to remove any perverse incentives which could lead to an excessive growth of the sector and its risks. eliminating the too - big - to - fail assumption by making resolution of systemically important financial institutions a