ECB chief economist says worst of crisis is over

FRANKFURT : The European Central Bank's chief economist said Friday that the worst of the eurozone's economic crisis was over but warned other major economies their policies were unsustainable.

Juergen Stark told reporters on the sidelines of a bank conference that "it seems that the worst is over" given that ECB loan operations came off smoothly at the beginning of July and economic indicators show solid growth in much of the 16-nation bloc.

"The most recent economic data is confirming that the recovery will continue," Stark said.

"We have entered a new phase in the sovereign debt crisis here in the euro area but which is a global phenomenon," he added.