TARGET abuse (abuse of TARGET system)

By the beginning of 2013, the Deutsche Bundesbank had accumulated a good 650 billion in claims against the central banks of the EMU members from the southern front. Marketable debt instruments were replaced by TARGET positions. These claims are serviced at one percent interest. This provides an incentive to leave balances in TARGET. – In the event of an exit from EMU by highly indebted members or in the event of the national bankruptcy of a participant, Germany would have to assume responsibility for 27 percent of the TARGET debt of these countries – equivalent to its share in the ECB’s capital stock. According to calculations, this would amount to a burden of about 16,000 euros per employed person in Germany. – However, because none of the European treaties provides for such a concealed assumption of risk, in spring 2012 Munich criminal law professor Bernd Schünemann and others filed criminal charges against the Executive Board of the Deutsche Bundesbank on urgent suspicion of serious breach of duty, serious fraud and breach of trust. – In practical terms, TARGET debt is a pledge that members of the eurozone have deposited and will lose upon exit. – See Perpetual. – See Deutsche Bundesbank Annual Report 2011, pp. 52 et seq. (on the problem of TARGET balances; overview), Deutsche Bundesbank Monthly Report of March 2012, p. 28 (explaining unusual balances; overview), ECB Annual Report 2011, pp. 37 et seq. (explaining TARGET balances in detail; many overviews), Deutsche Bundesbank Monthly Report of November 2012, p. 52 (TARGET balances since 2004; explanations), Deutsche Bundesbank Annual Report 2012, p. 115 (development of TARGET balances in 2011 and 2012), as well as the update in the respective Deutsche Bundesbank Annual Report, ECB Monthly Report of May 2013, p. 113 ff. (in-depth analysis of TARGET balances; overviews; references), Deutsche Bundesbank Monthly Report of January 2014, p. 75 (overview of Target balances since 2008).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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