The guiding principle behind the TARGET2-Securities (T2S) initiative proposed by the European Central Bank is the harmonised and efficient settlement of securities transactions using central bank money. T2S will remove the difference between national and cross-border settlement in central securities depositories throughout the Eurozone. T2S will help increase completion by ensuring level, cost-efficient and harmonised access to settlement in the EU securities market.

The building of the T2S platform is a complex undertaking. Without the removal of the key Giovannini barriers, especially the legal and fiscal barriers, the free flow of cross-border investment will continue to be restricted in the EU's capital market.