The Irish Congress of Trade Unions has said the "tectonic plates" of Europe have shifted.
Congress General Secretary David Begg has called on the Government to help delay the ratification of the Fiscal Treaty.
Mr Begg said: "The recent elections in France and Greece demonstrate a huge shift in thinking."
He has urged the Coalition to "stand four square behind Francois Hollande" to ensure a new growth strategy for Europe.
ICTU is not adopting a position on the treaty, instead urging its members to make up their own minds on whether to accept or reject it.
Mr Begg has told the annual conference of the Communication Workers Union today that the Government can either adopt some of ICTU's solutions, or "persist with a singular policy of dogmatic austerity and bring the house down".