Steep falls for tech-related shares sent Frankfurt down 283.32 to 7,692.63 on the Xetra Dax index, a 3.6 per cent decline.

Siemens, which had almost quadrupled in the 12 months to March 3rd, led the retreat, sliding €15.40 or 8.3 per cent to €171.20. SAP fell €57.50 to €988 and Epcos €8.50 to €133.

The shakeout did not stop chips newcomer Infineon from making its widely expected dazzling debut, although the shares ended well off their best of the day. Spun off by Siemens, Infineon rose to €84.99 before settling at €70.26, or more than double the 35 flotation price. Trading volume was a robust 19.2 million shares.

Paris saw new economy stocks stumble after falls in Asia and downgrades by analysts led to a lower assessment of the telecom and media sectors. The CAC-40 index lost 173.3 or 2.7 per cent to 6,336.93.

Another blow was the fear that British Telecom would mount a challenge to the Internet deal between Vivendi and Vodafone AirTouch. Vivendi fell €5.70 to €135.9.

Milan turned its attention to Fiat as a long- rumoured alliance for the motor group finally came to fruition. All classes of Fiat shares and shares of holding companies IFI and IFIL were effectively suspended for the session ahead of a press conference after the market closed on its alliance with General Motors. The Mibtel index lost 762 or 2.2 per cent to 33,899.

Amsterdam ended 18.55 lower at 658.06 on the AEX index after steep Nasdaq-driven falls for Philips and telecoms leader KPN. Philips, hit hard by steep early falls for the Nasdaq composite index, finished off 8.60 at 194.40. KPN shed 6.65 at 141.30.

Madrid got off to a positive start following Sunday's election, but turned down by midday. The Ibex 35 index ended 154 lower at 12,359.7.