The next meeting of the European Council takes place on 28 and 29 June amid growing fear and uncertainty over the Eurozone’s future. This column proposes a solution to the crisis – one that is bold and challenging, and that cannot wait.

Last week's meeting of the European Council were ushered in with optimism and the hope that Europe's leaders would take steps towards greater stability. This column argues that no such steps were taken, that there is really no change to the status quo, and that – under these conditions – the crisis is likely to fester indefinitely

Today the European Council meets to discuss a new package on economic governance. While this column praises the proposal’s acknowledgement of the dangers associated with external imbalances as well as fiscal imbalances, it is concerned about the approach to public and private debt, in particular the apparent weak stance towards the Stability and Growth Pact. Lessons from the Eurozone crisis do not appear to be learned.

Incentives are extremely misaligned when a small-nation electorate can punish ‘Brussels’ and its own political class at little or no cost. Ireland represents 1% of the EU, so 99% of the cost of the ‘no’ falls on other members. This column proposes a radical solution – the other EU members should propose to leave the old EU and create a new one with the Lisbon Treaty as its founding document. The Irish would then have to decide whether they’re in or out.

The new EU Treaty must be based on a compromise that does not cross member states’ red-lines while still delivering real improvement in the functioning and democratic accountability of the EU institutions.