Media release: Europe's decline a warning for NZ
Wellington (31 August 2015): We have become used to Europe’s debt crisis. However, the problems of countries such as Greece are only symptoms of a much deeper crisis. This is the thesis presented in a new essay written by Dr Oliver Hartwich, executive director of The New Zealand Initiative think tank.
In Why Europe Failed, Hartwich paints a sketch of a continent in decline. He argues that political and economic integration mainly started for geostrategic reasons during the Cold War. This means that at its core, the European Union has always been an anti-democratic project – and still is.
Hartwich explains how Europe’s economic decline is driven by the growth of government spending, particularly on welfare. While accounting for only 7 percent of the world’s population, the EU’s 28 member states account for 54% of global spending on social welfare.
Europe’s problems are compounded by an ill-designed monetary union and demographic change, which is about to turn the Old Continent into an old-age care home.
Dr Hartwich says “The cracks in Europe are clearly visible and will become increasingly pronounced over the coming decades. It is a world region that made the past, but will not make the future. We have to make sure that New Zealand learns the lessons from Europe’s mistakes.”
Commenting on Why Europe Failed, former Australian Prime Minister, Hon John Howard OM AC says “Oliver Hartwich has written a compelling essay, Why Europe Failed. He lucidly identifies the essentially undemocratic character of much of the European project. Political elites, unaccountable to national electorates, impose decisions on tens of millions of people without any real fear of rebuke.”
“Hartwich provides a sobering analysis of an ageing Europe, overburdened by the size of its welfare state. This gives added context to the current travails of Greece.”
Click here to download Why Europe Failed.
ENDS
Dr Oliver Hartwich is available for comment.
About The New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute, which is supported by a membership organisation that counts some of the country’s leading visionaries, business leaders and political thinkers among its ranks.
Our members are committed to developing policies to make New Zealand a better country for all its citizens. We believe all New Zealanders deserve a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.
The New Zealand Initiative pursues this goal by participating in public life, and making a contribution to public discussions.
For more information visit www.nzinitiative.org.nz