PICTURE SHOWS A TRAFFIC SIGN NEAR THE ECB HEADQUARTERS IN FRANKFURT, 2002-12-05 (photo)

A traffic sign is pictured near the European central Bank (ECB) headquarters in Frankfurt December 5, 2002. The European Central Bank gave the struggling euro zone economy an early Christmas gift on Thursday by slashing borrowing costs by half a percentage point to their lowest level in over three years. The ECB said it cut its benchmark refinancing rate to 2.75 percent from 3.25 percent after holding rates steady for more than a year. he cut was well-signalled in recent weeks by ECB officials, with the bank's President Wim Duisenberg saying on Tuesday that the inflation outlook had improved while the region's economic recovery appeared fragile and uncertain. REUTERS/Kai Pfaffenbach KP/JOH