TARGET2

Target 2 is the European Union’s payment system. It facilitates payment flow between each of the member states, the surplus and deficit is the accumulated balance of all of the payments on any given day in that member state. For example, if you’ve got a million pounds worth of payments going out of Italy, and that is going to France, and that is the only transaction in the day, then you will have a surplus in France and you will have a deficit in Italy for of the same amount