Economist: Government should sue ECB

A leading Irish economist says the government should sue the European Central Bank for forcing Ireland to pay billions of euro to unsecured bondholders in our bailed out banks.

Writing in today's Sunday Independent, Colm McCarthy argues that under the terms of the EU Treaty, the ECB could be forced to "make good" Ireland's losses during October and November, 2010.

He also says that if the euro is to survive the structures in place need to be overhauled - including centralising the supervision of banks and putting in place a proper bank resolution system that protects taxpayers from banks failing.

He also argues that the European Central Bank should be given extra powers - including being fully responsible for the maintenance of financial stability across the eurozone.