The Taoiseach Enda Kenny has raised the prospect of another EU treaty referendum as Europe's leaders prepare to consider a second bailout for Spain.

Mr Kenny said if leaders proceed towards a fiscal union, there are "implications" for new treaties.

He was responding to the Fianna Fáil leader Mícheál Martin, who called on Mr Kenny to set out the Government's position on the EU crisis as leaders prepare to meet at the end of June.

Mr Kenny said the Government wants leaders to agree a deal on bank debt, but also said the prospect of another EU treaty cannot be ruled out.

The Taoiseach said: "I would like to see adequate firewalls, I would like to see the structure of the ESM changed so that it can put money directly into the banking situation, that there be a separation of the sovereign from the banking crisis, because that is driving economies down.

"If you proceed down the end road of fiscal union, clearly there are implications for new treaties."