Prime Minister Enda Kenny said he was confident the public will vote in favour of ratifying the contentious compact.
"I believe it is in Ireland's national interest that this treaty be approved," said Mr Kenny.
The plans for the referendum were announced in the Dail.
Mr Kenny said that adopting the fiscal compact would be vital for Ireland's economic recovery and job creation.
A decision to hold a referendum was taken on advice from Attorney General Maire Whelan.
The treaty, agreed by 25 of the 27 European Union states after Britain and the Czech Republic refused support, must be ratified by January 2013.
It is designed to prevent a repeat of the Greek debt crisis and protect against the potential collapse of the euro currency.
The fiscal compact carries a number of firewalls aimed at protecting individual states from contagion from countries on the verge of defaulting on their debts.
The Irish government will set up a special referendum committee in the coming weeks, normally headed by a senior judge.
It will advise the public on what the vote is about but not whether to support or reject.