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The price to pay for having incompetent leaders

It is always dangerous to claim a victory against Angela Merkel. After the last eurozone summit, Mario Monti and Mariano Rajoy emerged triumphalist. The agreement and Italy’s football victory over Germany were “a double satisfaction”, the Italian prime minister crowed. His Spanish counterpart returned to Madrid in celebratory mood, too. Rescue fund cash could now be injected directly into Spanish banks. But he forgot that in the eurozone crisis, there are no victories – only deals.

Four weeks later, Spaniards have discovered the true price of Mr Rajoy’s “victory”: another austerity package and probable losses for small investors who gave money to the banks. Bond yields are near euro-era highs. Miners, firefighters and civil servants have taken to the streets. They blame the government for deceiving them until the truth was too ugly to conceal.

Read it completely in the FT.