However, I welcome this opportunity to discuss in the Seanad the economic and financial implications of the recent reduction in ECB interest rates. The recent 50 basis points cut in these rates – which is ECB terminology for a 0.5% cut – will have a positive effect on economic trends in Ireland. First, to the extent that the cut is passed on to borrowers, it will directly stimulate the Irish economy by increasing disposable income and domestic demand. In addition, it will boost activity in the economies of many of our trading partners, thereby stimulating demand for Irish exports. Our position as a small open economy, which is highly integrated into the euro area economy, means that an increase in European demand should have positive knock-on effects here.