For example, it has been suggested that TARGET2 balances should have an upper limit. But this would mean that the free movement of capital between euro area banks, which is guaranteed by the European treaties, would come to a standstill.
The TARGET2 balances are a symptom and show rather that the interbank market is not functioning smoothly as it did prior to August 2007 and that the Eurosystem central banks have to ensure that liquidity also reaches those areas with impaired money markets. With dysfunctional money markets, the ECB would not be able to successfully conduct its monetary policy.