Minister for European Affairs Lucinda Creighton has welcomed the report on the future of the monetary union written by the four presidents of the EU institutions.

The document now being circulated in advance of this week's summit of EU leaders sketches a roadmap to a deeper union, comprising of a banking, fiscal, and political union.

The report was drawn up by Herman Van Rompuy, Jean Claude Juncker, José Manuel Barroso and Mario Draghi.

It is being presented as a way of reassuring financial markets that there is the political will to stand behind the single currency.

But many of the changes are far-reaching and will be politically controversial.

Ms Creighton conceded that the changes being canvassed will require fresh treaty change, but she said the document ensures that the idea of eurobonds, mutualising eurozone debt, is now enshrined as part of the debate.

She told RTÉ News: "Eurobonds themselves would require treaty change.

"If we're serious about saving the euro then we shouldn't fear treaty change. The crisis has proven that the treaties are inadequate."

She said the paper provides a bridge between those who want eurobonds and debt mutualisation immediately, and those who see it as possibly only after the end of a move towards a deeper fiscal and political union.

The document contains four key elements that could lead to the following.

A banking union - Big banks to be regulated at European level, with a supervisor to clamp down on excessive risk, a European deposit insurance scheme instead of national ones, and an agency to wind up risky banks to stop them burdening taxpayers.

These are all ideas the Government supports.

A fiscal union - More powers for Brussels to rewrite national budgets if they continually breach existing rules, governments could also have to seek approval to borrow over a certain limit.

Deeper economic integration - This continues the business of streamlining economic policy, although Irish officials insist corporate tax would not be included.

Deeper political union - This is to give the new architecture more democratic legitimacy, perhaps by having a directly election commission president, or a second chamber for the European parliament.

In return, there could be a transition to eurobonds, beginning perhaps with short term eurobills or a debt redemption fund.

There will be no decisions taken on the report at the summit.

Instead, heads of government will be asked to make suggestions or additions, Mr Van Rompuy will then present final proposals and a timeframe by the end of the year.

The European Commission believes that a banking union can be done relatively quickly and does not require treaty change.