By John Smith • 27 August 2020 • 17:25
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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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.
Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.
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