Progress on two of the euro zone's most pressing concerns—containing the crises in Greece and Spain—faces holdups up in Germany, where Chancellor Angela Merkel is reluctant to ask parliament to vote on measures that are likely to raise fierce opposition from within her own coalition, The Wall Street Journal reported. Greece faces a funding shortfall that is likely to require more-generous financing from Germany and other euro-zone governments. But Ms. Merkel's aides are searching for a way to close the shortfall without asking German lawmakers for more money.

The government said on Monday it would allocate 1 billion pounds towards a new state-backed business bank designed to expand lending to smaller firms currently starved of loans from Britain's main lenders, Reuters reported. The government hopes its backing will be matched by a similar amount from private capital and could support up to 10 billion pounds of new and additional lending, Business Secretary Vince Cable said.

Crédit Agricole SA will likely have to pour a further €600 million ($779 million) to €700 million into its flailing Greek unit before it will be able sell the subsidiary, according to people from both the private and public sectors with knowledge of the sales process, The Wall Street Journal reported. The French lender's once grand ambitions in southern Europe have been badly bruised by the sovereign-debt crisis.

Family members of bankrupt businessman Seán Quinn are to seek to remove a receiver appointed over their personal assets and his lawyers amid claims over a possible conflict of interest, the Irish Times reported. The Commercial Court will hear an application from seven members of Mr Quinn’s family on October 9th to have the receiver, Declan Taite of accountancy firm RSM Farrell Grant Sparks, and his solicitors Arthur Cox discharged.

Debt-laden British retailer JJB Sports Plc said on Monday it was appointing administrators to sell its assets and brands after failing to receive an offer for the entire company, threatening thousands of jobs. A familiar sight on Britain's high streets with about 180 stores and 4,000 employees, JJB has been battling falling sales and stiff competition from larger rival and aggressive discounter Sports Direct International Plc. Sports Direct is seen as a potential bidder for some JJB stores.

Europe’s banks are on track to dispose of €20bn worth of loans backed by offices, shops and hotels this year as lenders across the continent race to reduce exposure to the volatile real estate sector ahead of tough regulatory changes, the Financial Times reported. Banks, including Lloyds, Santander and the Bundesbank, have already sold portfolios worth €7.5bn during 2012. Activity is set to accelerate though, with lenders working on offloading another €11bn before the end of the year, according to data from CBRE, the property services group.

Mobile phone operator PT Telekomunikasi Seluler (Telkomsel) is upbeat that it will win a Supreme Court appeal against a lower court ruling that declared the firm bankrupt for debt nonpayment, The Jakarta Post reported. “The company is optimistic because it has a strong position and a healthy financial performance,” Muhtar Ali, a member of Telkomsel’s legal team, said.

Portugal’s prime minister will meet trade unions and employers on Monday to discuss alternative austerity measures after mass protests forced him to ditch a contentious plan that would have cut workers’ pay to finance a reduction in companies’ costs, the Financial Times reported. Following a furious public backlash against tougher austerity, Pedro Passos Coelho faces the difficult task of convincing labour leaders and recession-hit employers that further spending cuts and tax increases are needed to keep Portugal on track with its €78bn bailout programme.

Greece should be allowed more time to meet deficit targets set by international lenders provided it is sincere about reforming its economy, French Prime Minister Jean-Marc Ayrault said on Sunday, Reuters reported. Near-bankrupt Greece needs the European Union and International Monetary Fund's blessing on spending cuts worth nearly 12 billion euros ($16 billion) to unlock its next tranche of aid, without which it faces default and a potential exit from the euro zone. "The answer must not be a Greek exit from the euro zone," Ayrault said in an interview with news website Mediapart.

Euro zone states are preparing to allow the bloc's permanent bailout fund to leverage its capital in the same way as its predecessor so it can reach a capacity of more than 2 trillion euros and rescue big countries if necessary, Der Spiegel said on Sunday, Reuters reported.