One day after Germany voted by a huge margin to ratify the EFSF bailout mechanism, Austria today voted in the measure.
The vote to allow the 440 Billion European Finance Stabilization Facility(EFSF) to prevent spread of the debt contagion and to enable bond purchases of countries that do not yet need bailing out such as Italy and Spain.
After the debt crisis spread from,Greece to Ireland and Portugal, bond investors turned their soghts to Italy and Spain driving their interest rates up.
French banks such as Societe General which has huge exposure to Greek debt saw over half their value lost in trading on the markets. Many investors view the Greek bonds as being worth 40% or less than their initial book value.
The French Finance minister and bank executives deny the need for recapitilization which the IMF chief Christine Lagarde (former French Finance Minister) has called for. The IMF head stated that European €330 Billion to finane the baks to ensure there is liquidity.