After an initial rally, the markets turned, pushing Spanish yields and CDS to near record levels; the market reaction increases the probability that the Spanish state may soon also require a bailout; Xavier-Vidal Folch says the deal will cost Spain a lot of money, and its benefits may well be outweighed by its costs; Ramon Munoz says Spanish politicians have made it a habit to deny crisis, and postpone the rescue; Maria Fekter, helpful as ever, says that Italy might be next; so does Reuters Breakingviews; Jose Manuel Barroso proposes a banking union for as early as next year; but warns that this is part of a long-term infrastructure, not for immediate crisis resolution; the Irish are wondering whether they got a better than a better deal than the Spanish; the Greeks were asking the same question, as political parties are now holding out the hope for a better deal; the Portuguese prime minister said that any special concessions for Spain should be granted to the other programme countries as well; the euro working group has been discussing Drakonian contingency plans to prepare for a Greek exit, including withdrawal limits on ATM machines (in other words the official message is: better take your money out right now.); Christine Lagarde says the eurozone has about three months to save the euro; Germany's business leaders are rallying behind Angela Merkel in support of her euro policies; Otmar Issing warns against a further mutualisation of debt, and says this would constitute a fundamental breach of European and German law; Antonio Padoa-Schioppa, meanwhile, asks Germany to spell out the terms under which it is ready to engage in a political union.