There are no immediately obvious solutions to the global crisis, according to the Minister for Finance, Mr McCreevy. The Minister who is due to make a speech to the IMF's annual meeting today, said yesterday that everyone is sure about the analysis and what went wrong with the global economy "but no one is too sure about the solutions."

Speaking to The Irish Times, he added that so far the crisis has not had much effect on Ireland, as our level of exposure to the Far East and Russia is not that great. However, he warned that it is imperative that wages are not allowed to build up in the economy, to ensure that if a downturn does come we can ride it out.

He added that next year's Budget surplus will be spent on taxation cuts, as well as on infrastructure projects and paying off the debt. With this crisis the 1999 Budget will have to plan for a rainy day."

According to Mr McCreevy the dangers for Ireland lie in the contagion spreading to the US and in a shift in trade towards the affected counties to take advantage of their devalued currencies. That could mean some US multinationals finding it cheaper to produce in South Korea than Ireland and a consequent shift in jobs.