ECB report advocates 'financial recievership' for states

The European Central Bank has warned in a newly-published study that the eurozone debt crisis and persistent overspending by member states could jeopardise the ultimate success of the single currency.

The study was co-authored by the ECB's outgoing chief economist Juergen Stark.

It proposes that countries which do not abide by the agreements on debt should surrender their economic powers to the European Union.

It also suggests that countries requiring assistance from fellow member states should be placed in financial receivership if their adjustment programme fails to remain on track, with the receiver executing subsequent budgets.

Ireland, Greece and Portugal are have so far had to be bailed out by the EU and IMF.