European banks debt crisis/Germany-France saviours

It's another crunch day for Europe, as the debt crisis that has engulfed the region for months intensifies.

Moody's slashed the credit ratings of two of France's biggest banks – Société Générale and Credit Agricole. amid fears that Greek default in eminent.Both have major holdings of Greek debt – leaving them vulnerable to a default.

The third Bank,BNP parbhaas, is planning to sell assets worth 70 billion euros, to muster capital reserves.

People are talking about common Euro bonds.

Italy, Europe's third biggest economy is also having trouble selling its bonds, its possible that it might default in 1.9trillion euros debt.It's parliament, with hundred's of parties has just approved an austerity package of 54billion euros.
Italian parliament votes for deficit-busting fiscal plan, despite protests

China has offered to help,having forex reserves of 3 trillion$, however they want more access to European market.BRICS too, is keen to help, and buy debt,(Italian) however, they too want to be sure where Europe is headed.

Spain has managed to sell, 3.95 billion euros worth of bond,today.

People have started to protest, and have been on the streets because of the austerity measures applied by various govts,Spanish govt, has cut the education budget by 2 b$, and has also asked the teachers to work 2 hrs extra, as there would be temporary freeze on hiring.

We have Germany and France trying to steer Europe and Euro Zone through this financial crisis.It is understood that Germany is having fearce opposition from its tax payers, who think that they are bailing out for the financial overruns of PIIGS.Infact,some they that Germany was always opposed to the entry of these weak economies in EU.

The friendship of France-Germany is also at stake which flourished after world war II,both of them have worked together.