So far, investors have argued that German Chancellor Angela Merkel is the big loser at this week's EU summit, as new deals struck mean Germany will have to shell out more cash.

Months ago, people across Europe were finally beginning to vocally question the German model of dealing with the debt crisis, which was: austerity + strict reforms. The reason people were questioning it was simple: It wasn't working. Not only were economies collapsing around the periphery, it wasn't accomplishing the official goal, which was to make the state solvent. Borrowing costs had only been shooting up. But in the months since, we've seen Sarkozy lose. We've seen the pro-bailout parties in Greece fail to form a coalition, and we've seen Merkel suffer more defeats in regional elections. So from a pure power standpoint, Merkel is the weakest she's been since the crisis began. A major eurobond coalition is forming among the French, Italian, and Spanish, as they all come for German money.