EU Economic Policies

Target2 – the Trans-European Automated Realtime Gross Settlement Express Transfer system – started off as a simple payment system for cross-border transactions in the Eurozone.

In short, Target2 has become a giant credit card for Eurozone members that import more than they export to other members. But note two key differences compared with a normal credit card: the interest rate charged is zero, and the loan never needs to be repaid.

Click here to read Professor David Blake’s critique of the EU’s debt-fuelled maintenance of the single currency.

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