The European Central Bank Between the Financial Crisis and Populisms

Public and Private Risk Sharing: Friends or Foes? The Interplay between Different Forms of Risk Sharing

“…The idea that taxpayer resources may be pooled for the purposes of public risk sharing then also implies the need to still adhere in one way or another to the general precept of "no taxation without representation", thus requiring appropriate governance, accountability and legitimacy structures that limit the potential for a political or even existential crisis following an economic one, echoing the political union elements envisaged in the Five Presidents' Report and analysed at greater length elsewhere. For a recent discussion showing the pertinence of such arrangements given the interplay between the financial crisis and the political ramifications in Europe highlighting the need to complete the euro area as an economy and polity, see Macchiarelli et al (2020).…”