ECB chief economist resigns

The German-born European Central Bank Executive Board economist, Juergon Stark, has resigned due to a conflict over the board’s bond-buying program.

It is believed that Stark resigned due to a conflict over the board’s bond-buying related to saving Italy and Spain from their respective debt crises, Reuters reported.

However, a short statement released by the ECB said that Stark, 63, had resigned for “personal reasons.”

The resignation comes, as Stark’s second term in office was to end on May 2014.

The resignation also increases concerns regarding the ECB, as the board’s president, Jean-Claude Trichet is expected to retire by the end of October.

Stark and Jens Weidmann, the German President of Bundesbank, along with two other members of the ECB Governing Council did not support the revival of the financial board’s bond-buying last month, which was reactivated after a 19-week halt to help Italy and Spain.

As a result of his announcement and as concerns over the debt crisis deepened, global stock markets began to fall.

Stock markets in France, Italy, Spain, and Germany witnessed a decline by more than four percent.