It has been a truly remarkable few years for Ireland and the European Union. In the space of five years Ireland has gone from being the basket case of the European Monetary Union to it’s number one success story. Economic growth is now the strongest in the Euro area, and according to the most recent data, this growth is having a real impact on employment. The dominant narrative among policymakers in the EU is that other peripheral states of the Eurozone should follow the Irish adjustment back to the market. This leads to two important questions. First, what explains this remarkable turnaround in fortunes for Ireland? Second, why are other Eurozone countries who pursued a similar adjustment still struggling to recover? Dr. Aidan Regan argues that the Irish recovery has nothing to do with the Troika-led adjustment of austerity and everything to do with the path dependent effect of a state-led developmental strategy.