A heated debate has arisen among pundits regarding Target2. Since the end of 2007, the German Bundesbank’s claims within the Target system have expanding from virtually nothing to more than 320 billion euros. Whereas the Bundesbank has tried to allay criticism by asserting that the balances within the European currency union offset each other, the Ifo Institute sees considerable risks here. In several articles in publications such as Wirtschaftswoche, the Süddeutsche Zeitung and the Frankfurter Allgemeine Zeitung, we have warned against a credit replacement policy and have called for an end to the uncontrolled lending to the national banks of the troubled euro countries.
Eurozone countries’ exposure, highlighting Germany’s share, derived from bailouts and other financial support measures for distressed countries: The Exposure Level
Bund der Steuerzahler Bayern e.V.: Target 2
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