The Opposition leader, Michael Martin has said secret discussion by EU leaders could see the exit Ireland from the Euro within weeks.

In a statement on the ongoing eurozone crisis, Michael Martin said that the Euro is in a "critical state" and that proposals were being discussed "secretly" which could have a "dramatic and deeply damaging impact".

Mr Martin's comments were in response to a report by Reuters on Wednesday night, that a proposal to create a smaller Eurozone is being considered by Germany, France and some elements of the Commission.

The new Eurozone is supposed to require deep coordination of all fiscal policies including taxation, while a senior German official is quoted as saying that the Eurozone should be “pruned to make it stronger.”

Mr Martin said that while the French and German governments had issued denials of the report, comments by their leaders had given support to the claims. The Fine Fail leader said that President Sarkozy said a ‘two-speed Europe’ is the "only model for the future”, while Chancellor Merkel announced in Berlin there is no distinction between domestic policy and collective policy within the Eurozone – both indictating they were considering the 'eurozone prune'.

"Irrespective of what the truth is, the situation today is that the deal agreed at the last summit has already failed and is unlikely to be implemented.

"With the future of the currency on the line, with major Treaty changes due to be agreed in principle within weeks and with enormous economic implications for us and the whole of Europe, Ireland needs to start speaking up."

According to The Economist, the bond-market run on Italy that has gone into overdrive this week has increased the chances of an eventual break-up of the euro.

The journal claimed that if Italy were in threat of default, it would leave the eurozone, creating an economic "shockwave", and forcing other countries to follow suit, bringing down the single currency throughout the region.

Although many are advocating the end of the currency to stave off another recession, The Economist said this would not be as attractive an option as it first appeared.

"What is vastly under-estimated by advocates of euro exit is the financial and social chaos that would ensue both in the departed country and in the rest of the world."

(DW)