Colm McCarthy: State should challenge legality of ECB's actions
Central bank needs overhaul and was acting outside its mandate when it forced unsecured debts on Ireland, writes Colm McCarthy
Ireland has been the author of its own misfortunes through failures in financial regulation and loose budgetary policy in the years leading up to the crash.
But the crisis in the eurozone is not due solely to policy failures of member states but also to the flawed design of the common currency and the weak policy response at European level. If the euro is to survive, the structure in place since 1999 needs an overhaul.
This must include centralised supervision of banks, a proper bank resolution system that protects taxpayers from bank failures and a more convincing system of deposit insurance to prevent capital flight. The European Central Bank needs extra powers, including explicit responsibilities for the maintenance of financial stability across the monetary union.