German investor confidence dropped sharply in June, sustaining its steepest fall in nearly 14 years, amid increased concerns over the health of Spain's banking system.
The ZEW think tank's economic expectations index plunged 27.7 points to minus 16.9 points, "the steepest fall since October 1998," the organisation said in a statement.
"The escalation of the situation in the Spanish banking sector contributed to the sharp drop in the indicator," said ZEW president Wolfgang. In addition, the poll was carried out before the outcome was known of the Greek elections at the weekend, he pointed out.
"Analysts' expectations offer a stern warning against an over-optimistic assessment of Germany's economic outlook this year," Mr Franz said.
There were unmistakable risks of a sharp economic downturn in Germany's key trading partners."In addition, there is the precarious situation in the euro area.
The outcome of the Greek vote offers a short breathing space, but nothing more and nothing less," the ZEW chief said.
In a knife-edge vote on Sunday, Greece's pro-bailout parties emerged triumphant, easing fears the crisis-wracked country could exit the euro.
telegraph.co.uk
The ZEW think tank's economic expectations index plunged 27.7 points to minus 16.9 points, "the steepest fall since October 1998," the organisation said in a statement.
"The escalation of the situation in the Spanish banking sector contributed to the sharp drop in the indicator," said ZEW president Wolfgang. In addition, the poll was carried out before the outcome was known of the Greek elections at the weekend, he pointed out.
"Analysts' expectations offer a stern warning against an over-optimistic assessment of Germany's economic outlook this year," Mr Franz said.
There were unmistakable risks of a sharp economic downturn in Germany's key trading partners."In addition, there is the precarious situation in the euro area.
The outcome of the Greek vote offers a short breathing space, but nothing more and nothing less," the ZEW chief said.
In a knife-edge vote on Sunday, Greece's pro-bailout parties emerged triumphant, easing fears the crisis-wracked country could exit the euro.
telegraph.co.uk
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