Here’s a screenshot from German magazine Der Spiegel…
Photo: Der Spiegel
It basically tells you everything you need to know.
There’s the “Spain and Italy getting their way” angle which implies that Germany didn’t get its way. The fact that this is in a mainstream German paper is significant.
You have Mario Monti seemingly telling Angela Merkel who is boss, and her grimly accepting it.
And then the caption, something happening that Merkel had opposed.
This is the signal markets wanted: Something happen that Merkel had previously opposed.