Former International Monetary Fund (IMF) chief Ashoka Mody has suggested that Germany should leave the eurozone - and that the foundations of the monetary union are inherently flawed.

Ashoka Mody headed the IMF's involvement in Ireland's EU/IMF bailout - since leaving the organisation he has publicly criticised the approach which was taken in Ireland, saying that the austerity-heavy programme did unnecessary damage to the Irish economy.

In an article published by Bloomberg, he argues that the latest round of Greek debt negotiations have highlighted the currency's fundamental problems.

He writes that it, "demonstrated yet again that countries with such disparate economies should never have entered a currency union."

"It would be better for all involved, though, if Germany rather than Greece were the first to exit."

The former-director says that there are no winners from the Greek negotiations, and that the result will be that Greece will have to endure more economic misery - while the rest of the union is pumping money into the country which it will never get back.

The possibility of Greece being taken out of the euro for five years was formally documented last weekend and the "political taboo" of the unbreakable union ended, according to Mr. Mody.

He proposes that, "Now that the idea of exit is in the air, though, it's worth thinking beyond the current political reality and considering who should go."

Adding, "A German return to the Deutsche mark would cause the value of the euro to fall immediately, giving countries in Europe's periphery a much-needed boost in competitiveness."

If Germany left he says that Netherlands, Belgium, Austria and Finland would almost certainly follow - and possibly create their own Northern currency bloc.

He writes that Germany would be able to manage its economy successfully with a more expensive currency - and that politically it would be able to be Europe's controlling state - without the pressure to fix other country's economic problems.

The economist concludes: "Germany relishes the role of a hegemon in Europe, but it has proven unwilling to bear the cost. By playing the role of bully with a moral veneer, it is doing the region a disservice."

"Rather than building "an ever closer union" in Europe, the Germans are endangering its delicate fabric. To stay close, Europe's nations may need to loosen the ties that bind them so tightly."