A European Central Bank council member said today the euro zone economy would grow slowly in 2003 due to global political tension and that the ECB was ready to act decisively if needed.
"The heightened global political risks, as well as the higher oil prices and weak equities markets, have reduced growth expectations for the euro zone in connection with previous expectations," Mr Klaus Liebscher said in remarks prepared for delivery in Bratislava, Slovakia.
Regarding the global polical tensions, Mr Liebscher said "monetary policy cannot counteract uncertainy of this kind".
"Depending on how the situation develops, the ECB board is ready to act promptly and decisively," he said.