Intergovernmental Relations (IGR), defined as a system of horizontal and vertical cooperation between federal and subnational governments, respond to a need for coordination and cooperation in nowadays’ federations that are shaped by interdependence rather than independence (Bolleyer/Thorlakson 2012). I argue that IGR can be a strong and effective structural safeguard, able to cover all three types of opportunism identified by Bednar (2009) that challenge the federal balance of power. But although the interaction of federal and subnational governments actually is an inherent feature of federal systems, ensuring intergovernmental cooperation is one of the main challenges federations are facing, because governments’ engagement in cooperation is always a voluntary one and because opportunism weakens commitment and compliance. As financial and economic crises increase incentives for opportunistic behaviour, this paper identifies intergovernmental safeguard mechanisms in times of crisis.
