This all feels rather miserably familiar. Eurozone leaders come to a dawn agreement about resolving the crisis. Markets react positively. The leaders appear on podiums to congratulate one another and themselves on reaching said dawn agreement. By lunchtime, something rather awkward has happened.
Angela Merkel, perhaps inspired by George Osborne, had done a U-turn in agreeing to use eurozone bailout funds to support Italy and Spain, but did she have the authority to do so?
Still, at least things continue to look up on the markets, with Spanish bond yields falling to 6.52%, Spanish markets up 4%, and Italian markets up 4.5%. The reaction of the markets is the most important thing, after all, although real trouble in the Bundestag will not be particularly helpful.
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