Businesses are increasingly concerned that instability after the general election could hit the recovery, according to a statement from Ibec, the business representative group.

“Irish business can create a further 60,000 new jobs in 2016, but hiring plans could be threatened if the election results in an unstable or anti-enterprise government,” Ibec chief executive Danny McCoy warned, in a statement issued after the latest jobs figures. The statement, coming shortly before polling, is its most significant comment to date on the general election and comes as opinion polls suggest it will be difficult to form a government after the election.

“Business will deliver more jobs over the coming years, but the conditions must be right,” according to Mr McCoy.” Sensible economic and enterprise policy is needed to support growth and job creation.”

Ibec’s statement pointed to other European countries, such as Greece or more recently Portugal, where it said that “ the failure to put in place stable pro-enterprise government has had a very direct and damaging impact on their economies.”

Ibec said its 7500 members were increasingly concerned that post-election political instability could undermine confidence in Ireland’s recovery internationally, raise borrowing costs and damage job creation.

“ Uncertainty is the enemy of business”, according to Mr McCoy, making it more difficult to plan ahead, make investment decisions and create jobs.

“ After some very difficult years, we are now rapidly reducing unemployment and generating the tax revenue needed to support investment in public services and vital infrastructure. It is vital that this positive trend continues. “

The statement pointed to Portugal, which has recently seen a sharp rise in borrowing costs after the election of a left-wing government.

“ Last October, 10 year bond yields in Portugal were 1.2 per cent higher than they were in Ireland, last week they were 3.1 per cent higher, “ according to Ibec. “ In contrast, Ireland continues to enjoy record low interest rates on its borrowing, at a time when we need ambitious public investment.”