In theory, in a perfectly integrated world, full risk-sharing can be achieved where consumption in regions or countries grows at a constant pace and is insensitive to local fluctuations in income and wealth. Normally, high levels of risk-sharing are achieved across jurisdictions within a country, or within a federation that represents a functioning political, economic, and monetary union.
The evolution of the Book of Requirements will also facilitate and guide the market adoption of the detailed standards that various market initiatives have developed or are developing. This is an important step towards interoperability, security and market access. Without it, there is a risk that technical fragmentation would remain or even be reintroduced in Europe – something that none of us wants.