'We cannot compare the current situation with past recessions, it is more serious this time', Mr Stark said.

'Banking sector problems have dramatic consequences that we will have to confront for years', he added.

'On top of that are problems in key industries, such as automobile manufacturing,' the economist said after several European car makers issued profit warnings and said they would suspend production'.

'We will have very weak growth for most of 2009', Mr Stark forecast.

The ECB governing council is to meet on Thursday, with analysts expecting it to cut its main lending rate by a half percentage point from the current level of 3.75 per cent. -- AFP