TARGET2 dispute indicates coming Euro Zone break-up - Spiegel
TARGET2 refers to the central banks' internal payment system, which has accumulated massive imbalances during the course of the euro crisis. These inequalities aren't problematic as long as the monetary union remains intact. So far, the Bundesbank has always played down this risk. But Weidmann's about-face is a "disastrous signal," say ECB executives because, for the first time ever, the Bundesbank "is no longer ruling out a break-up of the euro zone."
Elsewhere on the internet is a report that the PSI take-up for the "voluntary" bond haircut is only at 20%, see here.
Labels: Euro collapse