CitiGroup uges repeat of European wars

To the extent that Germany does have a meaningful veto, then the deal agreed on Thursday will inevitably be tested by markets. Investors will want to know whether she can secure Bundestag approval for the colossal sums needed to make the EFSF credible. Mrs Merkel cannot hve it both ways.

The revamped fund has headline guarantee power of €780bn, but only part can be deployed under its collateral rules. "It needs to be increased in size urgently,"said Citigroup's Willem Buiter."There is nothing to properly protect Italy and Spain from contagion. The crisis could strike again today." UK Telegraph