It's being billed as the decisive step that will draw a final line under the euro crisis; the most significant piece of euro-zone integration since the launch of the single currency; and the last chance to restore trust in Europe's battered banking system, unfreeze the single market and allow credit to start flowing freely again, The Wall Street Journal Agenda blog reported.

The International Monetary Fund proceeded with its record 2010 bailout of Greece despite deep internal divisions over whether it would work, according to confidential documents that contradict the fund's public statements, The Wall Street Journal reported. The new details of the rift come as the crisis lender is now pressing European governments to forgive some of the country's debt in a fresh round of difficult talks. The idea is unpopular with Germany and other European nations because their taxpayers would take the hit.

The Help to Buy mortgage scheme threatens Britain’s financial stability by rekindling a housing boom, an influential committee of MPs will warn on Tuesday, even as George Osborne launches the government’s flagship housing policy, the Financial Times reported. Virgin Money is the latest lender to sign up to the programme, the chancellor will announce, as he pledges to deliver to many young people the “dream of owning their own home”.

A top Serbian official warned of the country's dire economic straits and signaled that the government was preparing to cut the wages of public workers, as the cabinet prepared to pass new austerity measures on Tuesday, The Wall Street Journal reported. Deputy Prime Minister Aleksandar Vucic said the government will cut public worker salaries by 10% or more as the government struggles to avoid insolvency and a ratings downgrade of its bonds. Serbia is suffering staggering unemployment, with a quarter of the working-age population out of work.

Italian lender Banca Monte dei Paschi di Siena BMPS.MI +6.26% SpA approved on Monday the guidelines of a tougher restructuring plan aimed at obtaining the European Commission's green light on a state loan it received in February, and at restoring profitability by 2017, The Wall Street Journal reported. The new plan, which amends a set of targets and actions launched in June 2012, contains more drastic measures which the bank hopes will also enable it to reimburse €3 billion ($4 billion), or about 70%, of the state loan by 2014.

Britons are benefiting from efforts to mop up a scandal in which banks improperly sold customers tens of billions of pounds of insurance and other financial products over two decades, The Wall Street Journal reported. Although the government has been forcing banks to compensate aggrieved customers for two years already, new claims are still coming in, and at an even-faster clip. That, in turn, has provided a bit of a boost for the moribund British economy, creating tens of thousands of new jobs to handle the claims and putting more cash in people's pockets. U.K.

The euro zone can be separated into two groups, at least in terms of unemployment: Germany and the rest, the International Herald Tribune reported. In August, 1.9 million German adults — defined as people at least 25 years old — were counted as unemployed, meaning they were looking for work but had not found it. That figure is the lowest number since 1991, not long after the country was unified. In the rest of the euro zone, there were 13.9 million unemployed adults. That is the highest number since the euro was created in 1999.

Telecom Italia's new chief executive Marco Patuano will unveil a business plan outlining the future of its South American units and a possible corporate restructuring in Italy at a board meeting on November 7, trade union officials said, Reuters reported. Patuano told a meeting with unions on Friday the heavily indebted former phone monopoly had put on hold a plan to spin off its fixed-line network because the right regulatory conditions were not in place, they said in a joint statement.

Europe's newest cathedral isn't made of stone: It's the elaborate system for coordinating economic policy created by its leaders to prevent another sovereign-debt crisis, The Wall Street Journal Brussels Beat blog reported. But a debate is already brewing about whether the system is so baroque it's incapable of delivering results. Finance ministries are groaning under the burden of the system's complicated procedures. Many of the recommendations to national authorities that the structure has generated aren't being followed.

Bankrupt developer Seán Dunne has suffered a setback in the US courts after being ordered by a judge to attend court, answer questions and provide all information requested by the trustee managing his case in Connecticut, the Irish Times reported. In an order issued yesterday, bankruptcy judge Alan Shiff said Mr Dunne must “completely answer all questions posted by the trustee and turn over all documents requested by the trustee without limitation or qualification”.