Turning the TARGET2 debate on its head.
It was first suggested that TARGET2 balances will lead to losses for Bundesbank as it will make losses on the TARGET2 assets claims from Greece, Ireland etc. This was undone by further research saying first these claims are against ECB not Greece/Ireland Central Banks. Second, even if there are losses at ECB’s end the whole Eurozone will share the losses with share of Germany being around 27% (their share of ECB capital).
Now, this note from Sebastian Dullien & Mark Schieritz says German savers should be happy that TARGET2 balances are growing. First target2 is a response to what otherwise would have led to huge losses for Germans: