The Minister for European Affairs Lucinda Creighton has welcomed the report on the future of monetary union written by the four presidents of the EU institutions.
It sketches a roadmap to a deeper union, comprising a banking, fiscal, and political union.The document is being circulated in advance of this week's summit of EU leaders.
The report, drawn up by the President of the European Council, Herman Van Rompuy, the head of the eurogroup of euro zone finance ministers Jean-Claude Juncker, the President of the European Commission Jose-Manuel Barroso, and the President of the ECB Mario Draghi.
The document 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 euro zone debt - is now enshrined as part of the debate.
"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 told RTÉ News.
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 which 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 Irish government supports.
A fiscal union - more powers for Brussels to rewrite national budgets if they continually breach existing rules, government's 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.
And finally 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, then President Van Rompuy will 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.
