A lot of media mentioned that France/Italy/Spain are “Too big to fall/save”. But actually, how big it is?

It is the GDP ranking statistics provided by the IMF at 2010. In fact, the GDP size of France/Italy/Spain is nearly 60% of the entire Euro Zone.

If France/Italy/Spain adapts a very strict of austerity policy and repay the sovereign debt instead of maintain the consumption. The demand of Euro Zone will drop rapidly which will be a disaster for the Euro Stock market. If France/Italy cannot adapts the austerity plan. There will be a disaster too as there will be sovereign debt crises.

Indeed, the EURO banks are selling asset proactively as they are forced to increase 9% reserve ratio before June 2012. It will be very hard to borrow money in Europe in coming two years as Euro banks will become “Vampire” banks. (Vampire banks happened in Jap in the past 20 years, all the Japan banks behaved like a vampire as they would rather keep the cash instead of lending. It is because they dont trust any borrower beside the central bank.) They will not lend money to the SME (they have no confidence for the economy) but only purchase the bond from ECB. (Credit/FX Risk Free)

Yes, I agree completely. FIS Cannot just stop spending money. But they can redirect their spending to area that can create jobs and innovation for the country. Like invest in technology, infrastructure, education etc. Then, slowly cut program like long term unemployment benefit that encourage people to be lazy.