TARGET2 (or T2) is the real-time gross settlement (RTGS) system with payment transactions being settled one by one on a continuous basis in central bank money with immediate resolution.
Sounds simple? The problems is that massive imbalance have appeared between the suppliers of credit (like Germany) and the demanders of credit (like Greece and Italy). It is the direct result of an unsustainable balance of payment system. The imbalances represent both capital flight and debts that can never be paid back (like Italy).
Italian banks are not popular with many Italians, particularly the populist Five-star Movement.
Particularly with Italy having the lowest TARGET balance with the ECB (although Spain is no slouch either).
Any wonder why the ECB is dead set on low rates and an expanding balance sheet in an effort to keep rates low?
Here is a photo of the REAL T2 (Terminator): Mario Draghi.