We’d dared to hope at Via Meadia that the last European pseudo-fix for the euro would be one of the more successful — that it might buy a few weeks or even a couple of months of time before the whiff of panic returned to world financial markets.We were wrong. We reported earlier this week that the first signs of unraveling — a growing chorus of experts pointing out serious flaws in the new design — had already started to appear. By yesterday’s session in the European financial markets, the “summit effect” had worn off completely. Spanish and Italian bond yields are back to their crisis levels, and once again nobody quite knows what to do.When the top European officials reconvene, it seems likely that all of them will be in an even weaker position than they’ve been. Italy’s Mario Monti briefly stoked his popularity and prestige by claiming a win at the last summit; the failure of the summit takes the wind out of his sails, and the new weakness in the Italian bond market is an unmistakable vote of no confidence in what he’s accomplished to date. Chancellor Merkel, though she has been buoyed by a favorable opinion poll, faces a growing revolt in her coalition. And there are some signs that the vultures are beginning to circle the French financial markets. French banks are heavily exposed to bad debts in Italy, Greece and Spain. France’s deficit is even higher than thought, the rating agencies have France on negative credit watch, and there are questions about whether Hollande can steer France through the coming storm.Just when Europe needs vision, confidence and leadership most, its leadership class seems increasingly outmatched by events. The risk now is that Europe’s leaders will lose the ability to calm markets even from day to day. That could happen very fast; the consequences aren’t easy to predict.