German Finance Minister Wolfgang Schäuble said Greece will need a third bailout, in the bluntest admission by a top German official that the €246 billion ($328 billion) of international aid loans pledged so far won't be enough to save Greece from bankruptcy, The Wall Street Journal reported. "There will have to be another program in Greece," Mr. Schäuble told an election rally of his Christian Democratic Union party near Hamburg, news agencies reported.

The government has come under fire for abolishing a tax on top earners after data released on Tuesday showed companies delayed paying employees 1.7 billion pounds in bonuses until the tax cut took effect, Reuters reported. Bonuses are traditionally paid between December and March, the so-called "bonus season", but an Office of National Statistics (ONS) report revealed that a number of companies deferred payouts until April, after the top income tax rate was reduced from 50 percent to 45 percent.

Portugal’s emergence from its long recession is a sign that the European austerity recipe may work, but it also poses a dilemma for Lisbon and its lenders as a new dose of planned budget cuts may kill a fragile revival, the Irish Times reported. As a result, many economists expect the government to negotiate a new easing of the budget deficit targets during a bailout review next month with its European and IMF lenders, who could in return demand longer-term commitments on spending cuts.

The Finnish paper company Stora Enso Oyj agreed to pay $8 million to end a nearly nine-year-old antitrust lawsuit accusing a former unit of conspiring to fix prices for purchasers of coated paper used in magazines and catalogs, Reuters reported. According to a filing on Monday with the U.S. District Court in Bridgeport, Connecticut, the settlement resolves claims against Stora Enso and the former Stora Enso North America Corp unit, which was sold in 2007 and is now known as NewPage Wisconsin System Inc after going through bankruptcy.

Special liquidators for the IBRC have written to debtors saying they have begun assessing the market for sale of the former Anglo Irish Bank’s loans, which include debts of €250 million owed by property investor Paddy McKillen, the Irish Times reported. The move has stepped up the battle for ownership rights over London’s most prestigious set of hotel properties up a notch, with twin billionaire brothers David and Frederick Barclay saying there are eager to buy Mr McKillen’s debts.

The Greek government’s efforts to sell state-owned assets was sidetracked again when the chairman of the privatization agency was forced to resign after hitching a ride on the private jet of a Greek oil tycoon, the International Herald Tribune reported. One of the ways Greece plans to dig itself out of debt is through the sale of state-owned assets. But that effort has been besieged by missteps.

Russians who used the offshore haven of Cyprus before the collapse of the island’s banking system appear to have shrugged off the Kremlin’s calls to bring back their money to the motherland, instead opting to park their cash in the British Virgin Islands, data from the Russian central bank suggest, The Wall Street Journal Emerging Europe blog reported.

President Vladimir Putin is seeking ways to shore up the economy as corporate credit dries up amid policy makers’ reluctance to cut interest rates in the face of above-target inflation, Bloomberg reported. The economy grew 1.2 percent from a year earlier in the second quarter, the slowest pace since 2009, as investment shriveled. That may mean Russia has entered its second recession in five years, according London-based to Capital Economics Ltd.

AIB is putting together a panel of receivers and insolvency experts to move in on heavily indebted small and medium-sized enterprises (SMEs) and other commercial businesses with assets of value, the Independent reported. The bank is seeking tenders from insolvency experts who will take on the work on a fixed-fee basis. Much of the focus of the new drive will be on loans being managed by AIB on behalf of the State 'bad bank', Nama.

Wiesmann GmbH, a German maker of retro-style luxury sports cars, has filed for insolvency at a local court and said it’s seeking strategic partners and investors, Bloomberg reported. Rolf Haferkamp remains chief executive officer and plans to restructure the company, Wiesmann said in a statement yesterday. Operations will continue at the headquarters and plant in Duelmen. Engines are supplied by Bayerische Motoren Werke AG (BMW), the world’s biggest maker of luxury vehicles.