European Central Bank President Jean Claude Trichet said today that in countries where the property market is overheated everything should be done by local regulators to try to cool the market down.

Speaking at a press conference following the decision by the ECB not to raise rates today Trichet called the Irish property market 'abnormal'. He said the area of 'strong property market developments' needs careful watching.

He said that at ECB level they are more concerned with the overall euro area population of 313 million, and not Ireland's 4 million, so he would not comment on countries individually.

But he said that having such continued strong property markets was abnormal, a real problem and a problem that 'has to be cornered'.

This follows similar comments from European Commissioner Jaoquin Almunia the day before yesterday, who said that certain countries including Ireland need to use the current good times to finance the bad.

Today Trichet used exactly the same words as the Commissioner, he said that the upcoming budgets in these countries need to be 'ambitious' - putting money away for rainy days ahead.