The euro zone bailout fund has served its main purpose of safeguarding financial stability in the euro zone, but its operations could be improved, a report by an independent evaluator showed on Thursday. The report, the first assessment of the functioning of the European Financial Stability Facility (EFSF) and its successor, the European Stability Mechanism (ESM), was commissioned last year by the chairman of euro zone finance ministers, Jeroen Dijsselbloem, the International New York Times reported on a Reuters story.

Greece and its international creditors have reached a deal on the next stages of Athens’ €86bn bailout, removing the risk that it could default on over €7bn in debt repayments that fall due next month, the Financial Times reported. The deal ends months of uncertainty that have weighed on Greece’s recovery and spooked investors. But while shoring up the country’s immediate economic future, the agreement punts politically difficult discussions on debt relief into 2018.

European Union regulators should consider the social impact of winding down banks when they apply new liquidation rules that could affect depositors, retail investors and senior bondholders, a German-Italian joint paper said. The document, seen by Reuters, appears to challenge rules on bank failure in force since last year and that aimed to stop taxpayers having to rescue failed banks by mandating that bondholders, shareholders and uninsured depositors bare the brunt of any losses, Reuters reported.

Spain is calling for “aggressive” and rapid reforms of the single currency area, including the creation of a powerful pan-European treasury and a mechanism to force through labour market and other reforms in recalcitrant member states, the Financial Times reported. “We have a window of opportunity of no more than six months after the German elections [in September],” Luis de Guindos, the Spanish economy minister, said in an interview.

French oil services firm CGG said on Wednesday it had filed for bankruptcy in France and the United States as part of financial restructuring to reduce its debt burden. The company, in which the French state public investment bank Bpifrance Participations owns a 9 percent stake, said the restructuring would eliminate $1.95 billion in debt from its balance sheet, Reuters reported.

Air Berlin is in a "precarious" situation, German Economics Minister Brigitte Zypries said on Tuesday, as the loss-making airline seeks loan guarantees from regional states. Air Berlin, in which Gulf carrier Etihad Airways has an almost 30 percent stake, said last week it had asked Berlin and North-Rhine Westphalia (NRW) to consider loan guarantees, Reuters reported. The German federal government said on Friday any support would be contingent on the airline showing it had a sustainable business model.

Italy’s finance minister has said a “solution” to rescue two struggling banks in the north-east Veneto region — Banca Popolare di Vicenza and Veneto Banca — is close and talks with EU authorities are “encouraging,” the Financial Times reported. The statement by Pier Carlo Padoan comes as Italy’s largest domestic lender Intesa Sanpaolo on Tuesday morning held a board meeting to discuss joining a consortium of Italian lenders — including UniCredit — to provide €1.2bn for the Veneto banks and pave the way for a state-led rescue of the two lenders, say people involved.

The German Economy Ministry on Monday said it would take time for the federal government and two state governments to evaluate Air Berlin's request for state loan guarantees, Reuters reported. "The process is underway. Now the formal paperwork must be submitted," spokeswoman Beate Baron told a regular government news conference. "The review will take several weeks and months.

Euro zone finance ministers and the International Monetary Fund are likely to strike a compromise on Greece on Thursday, paving the way for new loans for Athens while leaving the contentious debt relief issue for later, officials said on Monday, Reuters reported. IMF head Christine Lagarde suggested a plan last week under which the Fund would join the Greek bailout now, because Athens is delivering on agreed reforms, but would not disburse any IMF money until the euro zone clarifies what debt relief it can offer Greece.

The subordinated debt market stayed relatively sanguine in the face of the wipeout of Banco Popular's Additional Tier 1 and Tier 2 bonds this week, though the full impact of the biggest event faced by the asset class has yet to be fully digested, Reuters reported. "The risk of write-down in these junior securities has been underpriced," said Puneet Sharma, head of credit strategy in investment management at Zurich Insurance. "This is a very significant event.