The main reason for the Eurosystem to embark on this project was to address the costly fragmentation of securities settlement market infrastructure, and to achieve greater technical harmonisation in the European securities settlement market. T2S allows for efficient and integrated securities settlement.
The hypothesis is that a flexible exchange rate allows such external disruptions to be reflected in the exchange rate. BIS Review 56/2003  1  Following the EMS crises at the beginning of the 1990s, a number of those countries which had to give in to speculative pressure chose to let their currencies float. This enabled them to use monetary policy - i.e.