-Hans-Werner Sinn, Ifo president
German business confidence strengthened for a fourth consecutive month in February, climbing to the highest level in seven months, fanning concerns over a waning resilience of the Euro zone's biggest economy. The German research institute, Ifo reported that the Business Climate Index ticked up to 106.8 in the reported month, compared with the January's reading of 106.7. Economists, however, had predicted 107.7. The Current Assessment sub-index, which indicates current conditions in the German economy, booked 111.3 points, after the previous month's figure of 111.7 and below analysts' forecast of 112.5 points. Moreover, the Ifo Expectations Index, showing firms' anticipation for six months ahead, booked 102.5 up from 102 in January. Last week ZEW reported that German analysts and investors were upbeat about the prospects of the Euro zone's powerhouse in February. Figures released earlier this month showed that Germany's economy expanded by 0.7% in the December quarter of 2014, beating analysts' forecasts.
Meanwhile, an agreement between Athens and its European colleagues significantly lowered the chances that Greece would leave the currency bloc. The Greek government is now expected to submit to its EU and IMF creditors a package of reforms that must be approved before Euro zone members ratify a bailout extension on Tuesday.
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