A security should be for life, not just for Christmas. Or at least part of the security.

That is—paraphrased—one of the many judicious suggestions from the Stability section of the ECB’s fourth Financial Integration in Europe report, released today. The proposals seem clever and heart-warmingly risk averse. But the elephant in the room—whether further integration is actually a good thing—is taken as a given: “the progress towards more advanced and integrated financial markets cannot and should not be seen to stand in contrast with the objective of financial stability,” states the report.

Specific suggestions …on …financial reform …include requirements that originators retain an economic interest in their securitisations, that products be simpler and more standardised, intermediation chains shorter, collateral better documented, the role of ratings reduced and investor diligence strengthened, and – more generally – that capital and liquidity requirements be strengthened and made less pro-cyclical.

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