Venue: EUI, Department of Economics
This meeting of the working group served as a preparatory event for the upcoming ADEMU Kick-Off conference (October 8th and 9th). Specifically, it focused on the role and potential of public risk sharing in the EMU. The meeting consisted of two parts: In the first, Anna Rogantini Picco gave a presentation on current EMU public risk sharing mechanisms. Their qualitative description was followed by a quantitative assessment of their effects and a review of recommendations to enhance their performance and scope. The proposals for common unemployment- and deposit-insurance were discussed in detail. In the second part, Professor Ramon Marimon presented his co-authored working paper on the optimal design of a financial stability fund. Among other innovative elements, he emphasized that the paper considers participation constraints of fiscally sound EMU economies. The meeting was concluded by a discussion which considered the policy implications of his results and compared them to alternative proposals.