The more exposed individuals are, the more likely a political backlash. Governments can mitigate these effects. Unlike the United States, however, the European Union is not a federation. This means that, as a rule, stabilisation and the provision of security in the form of social services takes place first at national level. Keeping governments solvent is a precondition for achieving that.
See, for example, Martino, R. (2021), “Public investment, convergence and productivity growth in European regions”, Working Paper Series, No 2019/21, Università degli Studi di Firenze; de Jong, J., Ferdinandusse, M., Funda, J. and Vetlov, I.