German and French proposals to restructure up to €30bn (£28bn) of Greek government debts were thrown into disarray after ratings agency Standard & Poor's said they amounted to a "selective default", The Guardian reported. The decision placed Germany and France on a potentially disastrous collision course with the European Central Bank (ECB). The proposals would have seen investors inject billions of euros into Greece by rolling over maturing Greek debt into new 30-year bonds. They are part of a broader €110bn rescue package, the details of which have yet to be finalised.

Bailouts of Europe's debt-stricken countries face a legal challenge on Tuesday as Germany's top court begins hearing a lawsuit against German contributions to the rescues of Greece, Ireland and Portugal, Reuters reported. The Karlsruhe-based Constitutional Court is not likely to block the German government's participation in bailouts altogether, or force the government to withdraw its commitments to current rescue plans, legal experts say. But most experts, including government sources, say they expect the court to impose conditions making it harder for the government to provide fresh aid.

Dutch investment group Novapars Capital said on Thursday it has agreed to buy the 115 million euro ($163 million) German loan portfolio of DSB Bank, the first sale of the bankrupt Dutch bank's operations, Reuters reported. DSB was declared bankrupt in October 2009 after it was hit by a liquidity crunch when clients withdrew about one-sixth of the group's deposits. The company was later seized by the Dutch central bank, DNB, and its assets are under administration.

Greek lawmakers passed legislation implementing a crucial five-year, €28.4 billion ($40.99 billion) austerity plan, paving the way for the country to receive fresh aid from its international creditors, The Wall Street Journal reported. Voting mostly along party lines, the measure was approved by a vote of 155 in favor and 136 against, and comes one day after a separate, closely fought parliamentary vote approving the overall outlines of the plan.

The Central Bank is planning to review how banks set pay for executives and staff in the final three months of the year, according to a first annual update of its strategy for banking supervision, the Irish Times reported. A decision will also be taken by the end of September on whether to introduce credit limits to prevent the banks repeating the mistakes of the past by lending too heavily into any one sector. The Central Bank plans to publish details on the limits by the end of the third quarter and introduce them by the end of the year.

The remnants of Danish bank Amagerbanken, which fell into state hands in February, will be allowed to distribute additional funds to eligible creditors, administrators of the failed bank said on Thursday, Reuters reported. Finansiel Stabilitet, the state company that manages failed banks in Denmark, said a new valuation of Amagerbanken's assets and liabilities provided a basis for increasing payouts by about 6.7 billion Danish crowns ($1.27 billion).

Greek lawmakers voted on Wednesday to sharply reduce government spending and sell off an array of national assets, staving off default on the country’s debt and easing, for the moment, a crisis among countries that use the euro, the International Herald Tribune reported. Markets rallied globally, and European leaders welcomed the passage of one of the most radical overhauls of the Greek economy since democracy was restored in 1974. But the changes are deeply unpopular in Greece, where street protests continued, and the Socialist government of Prime Minister George A.

The UK government faces a test of its determination to drive through its austerity programme when teachers and civil servants strike on Thursday over plans to reform public sector pensions, Reuters reported. Many schools across the country will remain closed and air passengers face delays when immigration officials join a walkout that could involve up to 750,000 workers.

Saab Automobile owner Swedish Automobile NV said Wednesday it secured a €25 million ($35.9 million) bridge loan from hedge fund Gemini Investment Fund that will allow it to restart production soon, The Wall Street Journal reported. With the convertible bridge loan, the sale of real estate and an order for cars from an unnamed Chinese buyer, Saab Automobile this week has secured €66 million in funding.

Businessman Seán Quinn and his family may challenge the jurisdiction of the Irish courts to hear a legal action by Anglo Irish Bank aimed at preventing the family transferring assets from Swedish companies behind the family’s properties in several countries, the Irish Times reported. Anglo, owed €2.8 billion by Quinn interests, claims the Quinn family set up a “mirror corporate structure”, the Cranaghan Foundation, in a “systematic attempt” to transfer assets to “mirror” Quinn companies for the benefit of the family, including Mr Quinn’s children and grandchildren.