The opposition Social Democrats have called a special meeting of the Bundestag's budget committee to discuss the late night deal in Brussels to allow the bailout fund to directly fund banks and eventually buy up government debt.

Carsten Schneider, head of the budget committee, said the Chancellor needed to explain her "180 degree u-turn." On Twitter, he indicated the agreement would lead to moral hazard. The deal means "all obligations on a country are now only paper tigers."

Meanwhile German newspapers are portraying the outcome as a victory for Italy's Mario Monti - who came into the summit saying this was the minimum he needed to be politically credible back in Italy - at the expense of Merkel.

Even (or especially?) if this is short-term tactic to damage Merkel by alienating her party base, the SPD is hopeless.

_{*Lunatic*, n.
One whose delusions are out of fashion.}