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"Economies with a low fiscal risk have to use fiscal policy.
Whatever is ultimately chosen, the degree of fiscal risk sharing will likely have to be significant.
These constraints would need to reflect the difference in the degree of exposure to fiscal risk".
It also needs a banking union and at least some form of fiscal risk sharing.
Minimising fiscal risk is Mr Osborne's explicit strategy the chancellor points to crises in Greece and Cyprus.
It offers a relatively compact bid: all venues sit within a 20-mile radius and government officials have promised a $75bn fund to shore up any fiscal risk.
Similar(42)
They must hash out other ways of fiscal risk-sharing (see Charlemagne).
The euro zone has no continent-wide safe asset akin to America's Treasury bond and no obvious mechanism for fiscal risk-sharing.
So it makes sense to share fiscal risks across the whole currency area.
It helped that Argentina's fiscal risks were so widely known.
Strong fiscal consolidation "remains essential to achieve a more sustainable budgetary position, thus reducing fiscal risks," the fund said.
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