The unchecked build-up of imbalances during the 2000s exposed the euro area to the risk of sudden stops. Such risk … remains to be covered. In general, reforms have favoured risk reduction over risk sharing. As a result, in the face of …, banking union lacks common financial backstops. Only further risk (and sovereignty) sharing can avoid harmful pro …

risk sharing (aiming to reach in the long-term the mutualization of public debt). The proposal envisages a new role for the … a political consensus at the EU level to reinterpret to the no bailout rule enshrined in the treaties so that risk … sharing institutions implemented with fairly priced insurance scheme can be allowed. New risk sharing institutions will foster …