2008 - 09. Unusually low interest rates in 2001 - 05 compelled investors to engage in high risk endeavors. It also …

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 …