Don't forget the Tiger: Why Ireland’s economy is crucial to the election

When Ireland’s political leaders locked horns in a TV debate earlier this week, economic pledges emerged front and centre.

Today, the country will vote in a general election, called early by incumbent Taoiseach Simon Harris.

The centre-right Fine Gael leader will be running against Michéal Martin of Fianna Fáil, as well as Mary Lou McDonald of Sinn Féin, for the top job. 

Unlike its European neighbours, Ireland is going to the polls in a strong financial position. Unemployment is low, state coffers are full, and inflation is falling.

Reports of economic success, however, don’t reflect reality for many.

Prices remain high, despite falling inflation. Ireland is also dealing with deep structural issues, meaning necessities like housing and healthcare are increasingly unaffordable.

Ireland’s wealth in the face of a wider regional downturn is largely thanks to its decades-longlove affair with multinationals.

The country’s corporate tax rate - which has now been raised - remained for years at a meagre 12.5%.

The result of this policy was that Ireland became a magnet for big corporations, who set up camp along Dublin’s river Liffey.

In 2015, corporation tax receipts amounted to €7bn in the country. This year, these are estimated between €23 and €24bn.

More recently, Ireland was given an early - if not slightly embarrassing - Christmas present from the European court of justice (ECJ).

The region’s top court ruled that the country had given Apple illegal tax advantages, forcing the firm to pay Ireland €13bn in unpaid levies.

A sticking point for Ireland’s politicians is that despite running a budget surplus, economists are advising fiscal caution.

The main reason for this is that the tax revenue is “windfall” - meaning it’s unreliable and