Italy and Spain have a Negative Balance Approaching €1 Trillion Within the Eurozone

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Italy and Spain have a Negative Balance Approaching €1 Trillion Within the Eurozone
Christine Lagarde President of ECB Credit: Twitter

THE European Central Bank (ECB) operates what it calls a Target 2 account is its settlement system which balances transfers between the Central Banks of Eurozone member countries.

Strong economies such as Germany and Holland have positive balances with money owed by weaker countries such as Spain and Italy.

In fact, those two between them owe about €1 trillion to the other members and this can currently be managed but a problem will arise if any country wants to leave the Eurozone or it breaks up.

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