Klaus Regling says it will be very difficult to reach a political agreement on the ESM's capabilities to fund banks directly; says each country has a veto on this, and in some parliaments have co-decision rights; Wolfgang Schauble says Ireland is to blame for its own financial excesses and the recession that followed from it; he says there should be no joint liability for that debt - everybody should clean up their own house; an anti-euro party won around 10% of the vote in Carinthia and Lower Austria; an anti-euro movement by German academics, journalists and business people is about to establish itself as a formal party ahead of the 2013 federal elections; Portugal saw mass protests against austerity over the weekend; Jeroen Dijsselbloem will announce a symbolic end of austerity today - though it will be nothing of the sort in substance; Dimitris Kontogiannis argues that Greece would have had to incur less austerity if the troika had focused on structural deficits; the Spanish government is challenging the declaration of Catalonian independence in the Constitutional Court; a Spanish general said the army would intervene to keep Spanish unity; the SPD has forced a delay in one of the implementation laws of the fiscal pact; the party is also due to propose a tough financial sector regime with new taxes, new regulations and higher capital ratios; Beppe Grillo is calling for a referendum on the euro; he has now explicitly ruled out any alliances, and demands to form the government by himself; Matteo Renzi denied the report that he is ready to lead a Grand Coalition; Italian GDP is down 2001 levels; Roberto D'Alimonte says the parties of the Left have enough of a majority to vote for the next Italian president, who may sustain a minority government in power; Italy's most senior political commentators are calling for a technical government; Simon Wren Lewis has done the math on structural primary surpluses, and finds even the core of the eurozone is Austerian; Mark Schieritz is sympathetic to the idea of a wealth tax on Cypriot savers; Hans-Werner Sinn, meanwhile, tells El Pais that the only solution to Spain's crisis is for Spain to become like Germany.