Germany's Schaeuble says worst of euro crisis is over

The worst of the euro zone sovereign debt crisis is over, German finance minister Wolfgang Schaeuble has said in an interview published on Friday.

The worst of the euro zone sovereign debt crisis is over, German finance minister Wolfgang Schaeuble has said in an interview published on Friday.

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Schaeuble said governments in heavily indebted countries such as Greece have now recognised that the crisis that began in Athens three years ago will only be overcome by implementing bitter reform measures.

"I believe the worst is past," Schaeuble told the daily newspaper Bild in comments released on Thursday ahead of publication.

"The government in Athens knows that it cannot financially overburden other euro zone countries. They are thus pushing forward with the reforms," he said.

Schaeuble also said he was optimistic about France, Europe's second major economy, and its efforts to stop its debt burden expanding.

"I am certain that France will fulfil its obligations," he said. "The government definitely knows that every country has to permanently pursue reforms to remain competitive."

Wolfgang Franz, the head of the "wise men" panel of German government advisers and of the independent ZEW think tank, was more cautious about calling a turnaround in the crisis that has spread to Ireland, Portugal and Cyprus and forced Spain to seek a bailout for its banks.

"Greece is also undertaking considerable efforts and has sharply reduced its net new borrowing in relation to gross domestic product. What's also positive is that political leaders at the European Union level have established a series of rules for the currency union, such as the fiscal pact."