- Christian Schulz, senior economist at Berenberg Bank
German business confidence declined more than economists forecast to the lowest level since 2010 as the deteriorating European economy weights on company earnings. Business climate index fell to 103.3 in July from 105.2 the previous month, said the Munich-based Ifo institute.
"The crisis costs Germany money," said Christian Schulz, senior economist at Berenberg Bank in London.
"Not because of the bail-outs it guarantees, not because of a potential ratings downgrade and its impact on borrowing costs, but because the economy is growing much more slowly than it otherwise would. It could stagnate or even fall into recession."
European stocks closed mixed on Wednesday. The Stoxx Europe 600 Index slid 0.07 per cent to 250.39. Germany's DAX Index gained 0.25 per cent and France's CAC 40 Index rose 0.23 per cent.
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