The retired midfielder has blasted the tactical approach of both Giovanni Trapattoni and Roy Hodgson at Euro 2012 demanding changes must be made
The Azzurri dumped out the Three Lions on penalties to reach the semi-finals after defeating Ireland 2-0 in the group stage. Carsley said the tactics employed by coaches Giovanni Trapattoni and Roy Hodgson doomed both nations to defeat.
"I actually felt Ireland had more of a go against Italy than England," he told the Irish Times.
Carsley added: "The English backroom really should have made their boys sit through the Italy v Irish game. It was there for all to see. Yet no lesson was learned. We’re back to the 4-4-2 debate again. This problem will not go away."
The former Everton star lamented on how both the Irish and English sides approached Euro 2012. He said that England in particular had the talent to defeat Italy but were undone by failing to control talisman Andrea Pirlo.
"Man for man, I believe England were the better side. But they didn’t go man for man. There was no individual pressure put on," he said.
Carsley continued: "England, or Ireland, could even have played with (Scott) Parker, or (Glenn) Whelan, in front of two midfielders, with a simple brief to stop Pirlo. Stand on him for 90 minutes, or until Cesare Prandelli was forced to change.
"Then you react and frustrate them some more. Get stuck into them but do it cleverly. It would have become 10 versus 10 and made a massive difference," said Carsley who works as a coach at Coventry City.
The 39 times capped international suggested a change of approach is needed if Ireland and England hope to compete at World Cup 2014. He added that he didn't think it could happen overnight and urged Giovanni Trapattoni to take advantage of existing Irish coaching talent saying 'we’ve suffered enough under the current manager’s stubbornness.'
"We’ve loads of ex-Irish internationals out there coaching – Kenny Cunningham, Gary Breen, Curtis Fleming, Graham Kavanagh, Alan McLoughlin and, of course, Chris Hughton.
"Why not get one or two of them around the national team? Our first job should be to ensure no team, no matter how technically gifted, should be allowed waltz through our midfield lines during the next qualification campaign, concluded Carsley.