ECB directors last night faced down finance ministers who are calling for further interest rate cuts and measures to increase spending and stimulate flagging European economies. The finance ministers are meeting in Luxembourg to review the threat facing euro-zone growth. But ECB chief economist Mr Otmar Issing said there was "no basis" for emergency spending to support flagging growth.

A French government source said finance minister Mr Laurent Fabius would publish a stimulus package today. Mr Fabius and his Luxembourg counterpart Mr Didier Reynders, who chairs the Eurogroup of finance ministers, have both said they feel the ECB has scope to ease following its decision to leave rates on hold last week.

Addressing a meeting of market traders in Dublin last night, ECB director Ms Sirkka Hamaleinen, said the bank was transparent but defended its practice of not producing minutes of its deliberations, although she admitted it might help at times.

Meanwhile, ECB vice-president Mr Christian Noyer was in Warsaw warning aspirant countries that they should not kill growth in their bid to beat inflation. A little extra inflation may even be a good thing as the dozen try to catch up economically with the rich western bloc, he said.