Target 2

Target2, the euro’s real-time gross settlement system, has emerged as the eurozone’s mechanism for financing the emergence of widening structural balance-of-payments gaps, whereby capital flows out of southern Europe into Germany.

For Greece, Italy, Portugal, and Spain, public-sector debt must now also include the central bank’s sharply rising debts.

Carmen Reinhart, Project Syndicate 1 August 2017


Target 2 at IntCom