These debts are only theoretical as they do not have any due dates and do not require payment of interest. However, when asked on the matter, the then governor of the ECB, Mario Draghi, replied to two Italian MEPs that in the event of leaving the Euro, the central bank of the debtor state should immediately settle its position. The affirmation has thrown petrol on the fire of the debate around the “Italexit” risk, as Italy has recently noted a debt balance with Target 2 close to €500 billion, when before the crisis of 2008-09, had a surplus of €50 billion.
On the other hand, Germany has credits for over €900 billion, prompting some German economists close to Chancellor Angela Merkel to come up with a plan B; for Germany to exit from the Euro and cash in the credits, which are in fact equal to about half of the domestic public debt.
It is clear that no one would ever be able to repay a mountain of debt so high, even if they were due. For many, this is a deterrent against the calls of those who propose the return of national currencies, for others, an insight into an area of a financial system which is not standing up as it is.
What is certain is that the threat is real and in the event that these events should occur, the consequences would be catastrophic, in particular for private property.
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