Much of our information processing and communications infrastructure is comprised of hardware and software products from third-party vendors. Additionally, the Federal Reserve utilizes commercial application software products and services for certain administrative functions and other operations. As a result, we must coordinate with numerous vendors and manufacturers to ensure that all of our hardware, software, and services are Year 2000-ready.
To some extent, the introduction of the euro in 1999 eliminated the normal market reactions towards euro area Member States with high government debt. The markets regarded the euro as a safe haven and yield spreads narrowed significantly. Italy is a case in point – its government debt is high, but has been stable for a long period of time.