Focus on Ireland During the ECB press conference, journalists focused on Ireland. The European Commission recently reprimanded the Dublin government over its economic policy. The commission says that Irish spending and taxation plans for 2001 are inconsistent with the Broad Economic Policy Guidelines adopted in June last year by the European Council. Ireland's plans for tax cuts and increased government spending conflict with the European Union's current support of budgetary constraint, according to the Commission. With the ECB still focused on containing inflationary pressures, it is seen as unlikely that it will reduce interest rates anytime soon.
European analysts remain concerned.
A slowdown in the US could infect European markets, if the downturn is sufficiently severe and lengthy.