-Jeroen Dijsselbloem, Dutch Finance Minister and Eurogroup chair
Investors in the Euro zone largest economy remained upbeat on Germany's near-term economic outlook in February, as the ZEW index reached the highest level in 12 months. The ZEW Centre for Economic Research reported that its index of German economic sentiment for the next six months jumped by 4.6 points to 53.0 this month from 48.4, recorded in January. Analysts had predicted the index would advance by 6.6 points to 55.0 in February. ZEW said the quantitative easing programme announced by the ECB in January has brightened sentiment among financial markets experts. The ZEW Current Situation Index soared to 45.5 after 22.4 a month ago, suggesting that investors in Germany are becoming increasingly optimistic about the nation's economy. As for growth prospects in Europe's number one economy, Bundesbank pointed to the possibility of stronger economic growth in Germany this year compared to current forecasts, saying it could upgrade its official forecasts. Meanwhile, Commerzbank, Germany's second-biggest bank, raised the likelihood of Greece exiting the currency bloc to 50%, after Eurogroup and the Greek government failed to reach an agreement on Monday. "In the absence of a realistic prospect for the extension of the existing or the agreement of a new aid programme the ECB would have to stop the Bank of Greece from issuing ELA loans. In a scenario such as that the Greek government would have little choice but to introduce its own currency," Commerzbank said.
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