Taoiseach Enda Kenny has claimed the risk to the economy from political instability is “real” and that “cool heads” and “steady hands” are needed to ensure continued growth.

Mr Kenny was speaking on Sunday at the launch of Fine Gael’s general election manifesto, which outlines party policies such as the abolition of the Universal Social Charge (USC) and a commitment to create 200,000 jobs by 2020.

Mr Kenny gave a number of warnings at the event about how economic recovery could be put at risk, particularly in an “uncertain world”.

The Taoiseach repeated comparisons with Portugal made by Minister for Finance Michael Noonan.

Mr Noonan said that when a left-wing government took power in Portugal after a period of political instability it led to economic instability.

Mr Kenny said: "On the 26th of February, Ireland will make its decision.

“Ireland will decide whether Ireland will go forward or backwards.

“It will decide whether the recovery is strengthened and protected or put at risk. Believe me, that risk is real.

“The implications are real because political stability and economic stability go hand in hand.”

Mr Kenny claimed Portuguese people are paying a “horrendous price” for political instability.

“Now is not the time to take risks with Ireland’s economy,” Mr Kenny said.

“This state of our recovery demands stability, security, cool heads, steady hands and a long-term plan focused on building a strong economy.

“In this uncertain world, Fine Gael’s long-term economic plan will strengthen and deepen that recovery.

“Already our economy is beginning to bolster us against global threats and bracing us against global challenges.

“It is up to the people. They go to the polls with the recovery itself in [their] hands.

“The choice is a simple one: forward or back, stability or chaos, security or strength, prosperity or poverty, recovery or risk? I ask the people of Ireland to stay the course.”

FF attacks

The launch also saw strong attacks on Fianna Fáil and its leader Micheál Martin, particularly by Minister for Agriculture Simon Coveney, Mr Martin's constituency rival in Cork South-Central.

Mr Kenny said he was not “contemplating” a post-election alliance with Fianna Fáil and that his concern is to re-elect the Fine Gael-Labour coalition.

However, Mr Kenny declined to definitively rule out an arrangment with Fianna Fáil.

Fianna Fáil responded to the attacks by accusing Fine Gael of panicking.

The party's director of elections, Billy Kelleher, said Fine Gael's campaign had "taken a sinister turn, which confirms they have no intention of allowing an election focused on real issues".

Mr Kelleher accused Fine Gael of using “Nixon-like” negative campaigning

“It’s already clear that Fine Gael has failed to convince the people to simply let them coast back to power,” he said.

“Yesterday Fine Gael said it was going to emphasise personal attacks on Micheál Martin for the final days of the campaign - and today has confirmed this, with one senior strategist stating: ‘We will scare the shit out of them [the Irish people] in the last ten days’.

“In another quote Fine Gael said that voters will be told: ‘You have a f***ing choice to make.’”