European Commission President José Manuel Barroso said he believes the fiscal compact treaty is very much in Ireland's interest, and would help rebuild the Irish economy.
However, he said it was up to each of the 25 member states how they ratified the treaty.
Speaking at a news conference in Brussels, Mr Barroso said he would make no comment on any suggestion that the referendum offered Ireland a chance to secure concessions on the cost of its bailout of the Irish banking sector.
He said he was convinced that the treaty was very much in Ireland's interests.
However, he added that approval was ultimately a question that the Irish people would have to answer themselves.
Yesterday, the Government confirmed that a referendum will be held on the EU Fiscal Stability Pact, following advice from the Attorney General.
No date has yet been set for the vote, but the referendum will be held on its own, without any other issues.
Adams confirms SF against 'austerity treaty'
Sinn Féin President Gerry Adams has said that his party's position on what he called the "austerity treaty" is crystal clear - they are against it.
Deputy Adams called on the Taoiseach to give a solemn undertaking that he will accept the outcome of the treaty.
He said Enda Kenny should tell his EU colleagues that he will respect the result and that they should do the same.
Elsewhere, The People's Movement have begun their campaign for a 'No' vote in the upcoming referendum.
At a press conference in Dublin, former Green MEP Patricia McKenna said the fiscal pact would cede more power to the EU and described it as a huge assault on the Irish democratic process.
The movement describes itself as a group which campaigns against any measures that further develop the EU into a federal state. It is made up of councillors, TDs and academics.
Earlier, Minister of State for European Affairs Lucinda Creighton said that a 'No' vote in the proposed referendum on the European Fiscal Stability Pact would send out the wrong message to investors.
Speaking on RTÉ's Morning Ireland, Ms Creighton said the issue of a cheaper deal on the Anglo Irish Bank bailout and the economic treaty should not be linked and were separate issues.
