by Andrew Stuttaford

The Greek elections decided very little. One bullet dodged, perhaps. Many more to come.

The reaction of Italian prime minister Mario Monti?

“This allows us to have a more serene vision for the future of the European Union and for the euro zone…”

The markets were not quite so, uh, serene:

By 0830 GMT, the euro was back down at Friday’s levels. Bellwether French bank stocks were in the red again, the cost of insuring against a default on Spanish government bonds hit a record high and the yields on Spanish 10-year bonds were up at record highs above 7%, indicating relentless market stress. The rise in yields is ominous for Spain, which faces a bond sale on Thursday.

Oh well.