Some Internet users are worried about receiving their salaries or retirement pensions for the month of March late. It’s true, that may be the case, because the Target 2 financial platform, through which the majority of transfers in Europe pass, closes for four days, due to public holidays.
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Some Internet users are worried on social networks, others are mocking: “We will receive our salary late this month”, “Europe is not even able to pay a salary on time”, we can read. Are we really at risk of receiving our salaries or retirement pensions for the month of March late?
The main payments platform closed for four days
This is true, at least for all those who usually receive their salary or retirement pension at the end of the month, or on the first day of the following month. The Eurosystem’s payment processing platform, called Target 2, and through which the majority of transfers in Europe pass, is suspending its transactions for four days, from Friday March 29 to Monday April 1 inclusive.
This pause in transfers is due to the calendar this year. Target 2 always closes on Saturday and Sunday, which explains the delays when making a transfer on Saturday morning, for example. The platform also closes on public holidays, including Easter Monday and Good Friday, as indicated on its closure schedule, published online. This year, April 1, payday for many employees, falls on Easter Monday. And Friday March 29 is also Good Friday. This date is not a public holiday in France but it is in some of our neighbors, notably in Spain and Germany, but also in certain French border departments, Moselle, Bas-Rhin, and Haut-Rhin. Target 2 is therefore closing that day as well. Result: bank transfers will be stopped for four days, from Friday March 29 to Monday April 1 inclusive.
Some 55,000 banks, subsidiaries and branches affected
Many people will be affected because no less than 55,000 banks, subsidiaries and branches in Europe use Target 2. The platform, specialized in payments of large amounts, has for example processed 90% of the total value of payments in euros made in 2016.
Some payments will still take place between Friday and Monday: transfers between the same banks, and instant transfers. Furthermore, private sector retirees will not be affected, because they receive their main and supplementary pensions later, at the beginning of the following month. Obviously, if your employer has anticipated, by launching the transfers well in advance, you will be able to receive your salary before Friday.