German business confidence up as Greece fears ease: Ifo

A woman is seen inside a One Euro shop in central Athens, Greece July 26, 2015.Greek banks are set to keep broad cash controls in place for months, until fresh money arrives from Europe and with it a sweeping restructuring, officials believe.
PHOTO: Reuters

BERLIN- German business confidence rose slightly in July, reflecting relief in Europe's biggest economy about the deescalation in the Greece debt crisis, the Ifo economic institute said Tuesday.

The Ifo institute's closely watched business climate index rose to 108 points, the first increase in three months, from a revised 107.5 points in June, beating analysts' expectations, Ifo said.

After months of crisis talks and fears Greece would crash out of the euro common currency, eurozone ministers and Athens have agreed to resume talks for a third EU-IMF bailout.

"The preliminary easing of the Greece question has contributed to the improved sentiment in the German economy," Ifo president Hans-Werner Sinn said in a statement.

"Companies' assessments of the situation improved significantly after a damper the previous month. The business prospects too were somewhat more optimistic after three consecutive declines."