The backfire could be seen either on financial integration (by controlling capital outflows), or on trade policy (rising barriers on imports). We have to avoid that the positive aspects of integration are overcome by the flaws of the system.
This posed downside risks to the inflation outlook in the euro area. We also observed a sharp tightening of financial conditions at a time when the economy needed support. Signs of financial fragmentation were re-emerging, impairing the transmission of our policy.