As a rough measure of the fragmentation of bank funding markets across the euro area, Target2 balances have declined by about € billion since their peak in mid-2012. To give but one example, the Target2 balance of the Banco de España has declined by about one-quarter since August 2012.
This, in fact, is exactly what the three arrows of Abenomics are aimed at. One can often hear discussions as to whether monetary easing or structural reforms are more important, but I do not see this is a particularly constructive question. Both are essential for overcoming deflation and achieving sustainable growth.