The Australian

In 2026, New Zealand’s coalition government faced obstacles implementing promised reforms, as bureaucratic resistance led to diluted policies on medicine regulation, planning law, and the Reserve Bank’s powers, highlighting challenges in governmental effectiveness.

New Zealand signed its first city deal with Auckland, promising funding for local projects. However, it lacks real local autonomy and continues centralised control from Wellington, limiting true local governance.

New Zealand’s government is shelving a referendum for extending the parliamentary term from three to four years, despite widespread support. A three-year term leads to urgency in legislation, hindering reform and effective governance, necessitating change.

New Zealand faces an economic crisis due to rising oil prices and supply disruptions, prompting officials to prepare contingency plans. Previous crises were met with borrowing rather than structural reforms, perpetuating deep-rooted issues.

Australia and New Zealand face economic challenges stemming from declining productivity. Their central banks have divergent policies, but both nations must address structural reforms to foster sustainable growth and efficiency.

Australia’s economic transformation since the 1980s resulted more from Hawke-Keating reforms that opened markets than from the Trade Practices Act. Effective competition arises from fewer barriers, not merely regulations.

At the World Economic Forum, Mark Carney emphasised the need for middle powers to reform their policy-making systems. New Zealand’s recent reforms highlight the challenges of bureaucracy and accountability in achieving lasting change.

It is timely to reflect on Münster’s town hall, birthplace of the Westphalia peace treaty, contrasting its legacy with contemporary views on sovereignty – not least the erosion of established territorial norms, particularly through the actions of U.S. leaders.