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Ten years after the Great Recession plumbed economic depths unseen since the Great Depression, it is necessary to step back from quotidian politics to get a glimpse of the bigger picture.Suddenly, near-bankrupt Southern European countries no longer had to pay huge interest premiums of around 5-20 percentage points relative to Germany.In an attempt to contain these overdrafts, Northern European countries granted their southern neighbors massive fiscal bailouts.The ECB's bailout initiatives climaxed with the introduction of quantitative easing (QE), whereby the Eurosystem's central banks purchased 2.3 trillion euros ($2.8 trillion) in freshly printed euro securities – including government bonds worth 1.8 trillion euros – between 2015 and 2017 .The central banks themselves received so-called Target compensation claims against Southern European central banks, guaranteed by the euro-system.By the end of 2017, the Target overdrafts owed to the Bundesbank alone totaled 907 billion euros. In Macron's proposed scheme, each euro transferred from a Northern to a Southern European country would reduce the Target claims and liabilities by 1 euro.
Germany’s flawed energy policies
Let the British people decide on Brexit once and for all
From a no-deal Brexit
to a no-Brexit deal
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