A leading economist has warned that the ECB’s decision to raise interest rates could lead to a double-dip recession in Ireland and other member states.

Speaking during an interview with the BBC, Prof Nouriel Roubini, professor of economics and international business at New York University, said the move to increase rates could “choke” struggling euro zone economies such as Ireland, Greece, Spain and Portugal. “The euro becoming stronger and stronger is preventing the resumption of economic growth,” he said. “If there is not going to be economic growth their own fiscal problems . . . will never be resolved. There is a risk of a double dip.”