Party leaders have begun campaigning and canvassing on the first full day of the general election ahead of the February 26th vote .

Fine Gael launched its long-term economic plan outlining how it will create 200,000 jobs by 2020.

The plan outlines the revised net fiscal space of €10.1 billion, reduced from the original figure outlined by the party of €12 billion. The “fiscal space” is political shorthand for money the next government may have available for the purposes of tax cuts or spending increases.

The €10.1 by 2020 will be divided into four parts - a rainy day fund worth €2.5 billion, €4 billion for investing in public services, €2.5 billion for tax reform and €1 billion into a €4 billion jobs fund.

Mr Kenny said the €4 billion for public services will fund over 10,000 additional doctors, nurses, Gardai, teachers and social workers.

Mr Noonan said every political party would make promises between now and polling day. He there would be no money available if the recovery is not allowed to continue and insisted Fine Gael has been modest in its proposals.

The Minister also sought to explain the difference between the €12 billion fiscal space calculated by the party as the resources available to the next Government for tax cut and expenditure increases and the €3.4 billion figure reached at by the Irish Fiscal Council.

He said the council was relying on inflation and that was a policy decision. The party will also aim to deliver targeted improvements in welfare payments and services for the elderly. It will also proposes the extension of free GP care to the children of working families by 2019.

There will also be a roll out of a new scheme of subsidised, affordable childcare for children aged between nine and 36 months. The plan also commits to increasing taxes on nicotine related products.

Fianna Fail

Fianna Fail leader Micheál Martin has been on the campaign trail in Waterford. “Just finished a walkabout of Waterford City with general election candidate] @mary_butler_. People are looking for a fairer way forward #ge16 “, he tweeted.

Visiting Waterford hospital he commented on the Government’s handing of the health services “They have failed abysmally to deliver what they said they would do five years ago and in its stead they created chaos and instability in our health service by the lack of direction and botched policy after policy”

Labour

Labour party leader Joan Burton was launching the party’s economic plan in Co Louth. “135,000 new jobs created already with @labour in govt. Our new jobs plan will ensure a job for everyone who wants one by 2018,” Ms Burton tweeted.

“We are a separate party to Fine Gael so we want to prioritise people particularly going back to work. That’s why our plans are very ambitious. Probably a little bit more ambitious than theirs are,” she said at the launch.

Sinn Féin

Sinn Féin leader Gerry Adams has been canvassing in Dublin and Meath today. “We are going after every single vote . If people really want change and I have a very deep sense that a very large section of people do want real change then they should come out and vote for Sinn Féin.

Deputy leader Mary Lou McDonald has accused Fine Gael “spoofing on their figures” and said they were “making it up as they go along”. “They are now in disarray and the announcement that they are to drop their rainy day fund is a direct result of them being exposed by Sinn Féin,” she said in a statement.

Green Party

Meanwhile at the launch of Greens election campaign in Dublin, party leader Eamon Ryan said he agreed with the far lower limits for extra spending set out by Irish Fiscal Advisory Council, which comprises a little over a quarter of the figure project by other parties.

“We we are with the Fiscal Advisory Council,” Mr Ryan told a press conference on Thursday. “Fine Gael is not taking into account pay rises and social welfare”

“Political parties cannot say they are not going to accommodate pay increases or social welfare increase. The IFAC has set out of a framework that is the prudent one to follow.”

Mr Ryan said nor would the Greens lower universal social charges until it was shown that the increase in revenue of corporation taxes was not cyclical but more permanent.

Poll result

There has also been reaction to the first poll of the general election. Mr  Kenny said the poll result would fire up the Fine Gael party and insisted every member knows they have to fight for their seat. He categorically ruled out going into coalition with Fianna Fail, describing them as the party who wrecked the economy.

He was speaking after the latest Irish Times/Ipsos MRBI poll showed the a fall in support for the two Government parties.

He denied Fine Gael was seeking credit for the recovery in the economy insisting you would be a “fool” to do so.

The only alternative to a Fine Gael/Labour coalition is a Fianna Fáil and Sinn Féin government, the Minister for Finance has said.

Michael Noonan said Fianna Fail's refusal to enter coalition with Sinn Féin cannot be taken seriously.

Mr Noonan claimed he has been around long enough to remember when the party insisted it would not do business with the Progressive Democrats or the Labour party.

He said the Fianna Fail party has become notorious for its lack of policies for the past five years.

Mr Noonan said Sinn Féin has created a lot of policies but under their plans the tax base would be narrowed, taxes on income and on jobs would be raised.

The Minister said: “The opposition seem to think there is a pool of money around that we can spend regardless.”

Taoiseach Enda Kenny said Fianna Fail and Sinn Féin are two like-minded parties who if in power would bring the recovery to a “shuddering halt”.

Speaking on the first full day of the general election campaign, Mr Kenny said the recovery is not guaranteed and has to be protected carefully and minded very closely.

The Taoiseach said Fianna Fail and Sinn Féin fought tooth and nail against the policies that brought about the recovery.

The Irish Times/Ipsos MRBI poll shows a two per cent drop in support for Fine Gael. The Labour party’s support is now at seven per cent while Fianna Fail has increased its poll rating by two per cent.

Compared with the last Irish Times poll in November support for Fine Gael is 28 per cent (down two points); Labour, 7 per cent (no change); Fianna Fáil, 21 per cent (up two); Sinn Féin, 19 per cent (down two) and Independents/Others, 25 per cent (up two).