Revaluation expected to lead to reduction in interest rates

Saturday/Sunday

Saturday/Sunday

The pound was revalued at an emergency meeting in Brussels on Saturday. The 3 per cent revaluation of its central rate in the EU Exchange Rate Mechanism to DM2.48 means the rate for entry to monetary union has effectively been set.

The decision meant increased pressure to reduce interest rates. Mortgage rates are expected to fall by at least half of one percentage point and a further one point or more later.

With the economy set for a further boost from lower interest rates the Government has said it will not increase Exchequer spending this year.

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The Cork Fine Gael TD, Mr Hugh Coveney, died. It is believed he fell to his death trying to rescue one of his dogs while walking on the cliff top by the coast at Robert's Cove, Cork. Mr Coveney, a former minister for the marine, was Fine Gael's most senior figure in Cork and could have expected a Cabinet post in any future government that included Fine Gael.

At the time of his death, five of his seven children were aboard the family's yacht, The Golden Apple, off the Galapagos Islands on a round the world sailing trip in aid of the Chernobyl Children's fund. Mr Coveney was a keen sailor.

The RUC said it was treating as murder the death of David Keys in the Maze prison. He had been charged with the murder of two friends in a bar in the village of Poyntzpass, Co Armagh.

The US ambassador to Ireland, Mrs Jean Kennedy Smith, confirmed she will be leaving her post this summer after five years in Ireland.

Monday

In Washington, President Clinton and the British and Irish governments were involved in intense lobbying of the Northern Ireland parties, in particular, Mr David Trimble and Mr Gerry Adams, to get them to agree to make the compromises required to finalise a Northern agreement by May.

Security sources said that Mr Keys was beaten and then hanged from a window with a sheet in his prison cell to give the impression that he committed suicide. His wrists were also slashed.

Ryanair management gave lump sums of £700 each to ground handling and check-in staff who worked normally during the dispute over union recognition. Other members of staff who worked normally during the dispute received payments of £350.

Tuesday

On St Patrick's Day President Clinton urged the visiting Northern Ireland politicians to seize "this chance of a lifetime for peace".

Mr Clinton was presented with a bowl of shamrock by the Taoiseach, Mr Ahern, who praised the President for his "inspiring vision of peace" and for being "true to your promise that you would be a friend of Ireland, not just on St Patrick's Day, but every day".

In Dublin tens of thousands watched the new-style parade which was also a culmination of four days of celebrations with street theatre, firework displays and a giant ceili on St Stephen's Green.

In Cheltenham, the Irish cheered as the Irish-owned and trained Istabraq romped home to win the Smurfit champion Hurdle at 3/1.

Wednesday

The amount Ireland gets annually from the EU structural funds will be cut by as much as 80 per cent by the end of 2006, according to new funding rules.

The European Commission unveiled its Agenda 2000 proposals for internal reform ahead of enlargement.

The new arrangements include radical Common Agricultural Policy reform proposals, which have angered farmers.

After two days of intense lobbying in Washington the Taoiseach said that he now felt everyone wanted a deal to be done on Northern Ireland.

Thursday

The Loyalist Volunteer Force (LVF) has threatened prison officers at the Maze with "direct action" if LVF prisoners are mistreated. The threat came amid claims that the Northern Ireland prison authorities had ceded control of the Maze to paramilitary inmates.

The RUC in riot gear were called to an Orange Hall in Lisburn, Co Antrim after heated exchanges between members of the fringe loyalist parties and DUP supporters. The leader of the Ulster Democratic Party, Mr Gary McMichael, attempted to address the meeting amid stormy scenes.