Speeches

All in all, we are looking at a system of enormous complexity in which no single institution or person is in charge of dealing with the euro crisis. This chaos, although fascinating armchair entertainment, makes it difficult to predict the future of Europe.

Unlike some, mainly British, commentators I do not derive any pleasure from looking at Europe’s problems. And though I am quite an EU-sceptic, I would still call myself a Europhile.

It’s not a great secret anymore that European countries have had very mixed experiences with their immigration programmes after World War II. In particular, Germany’s so-called ‘guest worker policy’ of the 1950s and 1960s is now widely regarded as an example of how not to run an immigration programme.

It is a very useful experience to travel to the scenes of political disaster. Because they hold lessons for us to learn. At least that’s my own experience travelling between Europe and Australia.

When we are looking at Australia today, we can be pleased that we have so far avoided many of Europe’s problems. Our debt still looks manageable. Our demography is still healthy. Our society is still united. But Australia could end up like Europe – under different stars, but with the same destiny.

Let there be no doubt that Australia is as good a place as you can find on this planet. Whatever you’re looking for, you can find it right here.

In many ways, Australia today reminds me of Europe in the first decades of the post-war period. We are full of optimism … our population is growing … our economy is booming. But make the wrong choices about the size of government now, ignore the challenge of population ageing, gloss over temporary problems with public deficits, and just a few decades later, we will end up like Europe – under different stars, but with the same destiny.

There are good reasons to remain cautious about Europe’s economic future. While it is true that things have somewhat stabilised after the tumultuous events of the last 12 months, we should not forget that there are some difficult challenges ahead. For Europe, the financial crisis may be over, but a new crisis is just about to begin.