Along with the downturn in the fortunes of the technology sector, a more pragmatic note has entered the budgetary arithmetic. This week's publication of the Department of Finance's economic review and outlook was accompanied by comments from Minister McCreevy about the need to adjust expectations to take account of new economic realities.

After years of tax cuts and spending growth, it will be a chastening experience for both the Minister and the taxpayer, and will not be welcomed by Government backbenchers facing into an election year.

Still Mr McCreevy had more reason than most to smile this week at the comments from Germany's finance minister, Mr Hans Eichel.

After being lectured at length by his peers in Europe and by the Commission over the Republic's economic policy, one can only wonder what he made of Mr Eichel's suggestion of toying with the stability pact to accommodate the domestic needs of the German and possibly certain other European economies.