Quote

Here in Australia we do get impacted by global economic events. But we should have some confidence that our economy has got strong underlying fundamentals.

Taken as a whole, Europe's share of world output is projected to fall by almost a third in the next two decades. This is the competitiveness challenge - and much of our weakness in meeting it is self-inflicted. Complex rules restricting our labour markets are not some naturally occurring phenomenon.

Austerity need not be Europe's fate.

So, there is enormous instability in the global economy with a shift of winners and losers.

The U.K. and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not. You've got to spend money.

While the wider global environment is worrying, we are seeing some positive results in our economic affairs.

My genuine belief is that if we can get through the eurozone crisis from a political point of view, we've got a lot of engines that can drive our economy, that will restore confidence and get us moving on.

If you followed this economic crisis and you do not think that the world is getting flatter, you are not paying attention. We saw the entire global economy at one time acting totally in sync. The real truth is the world is even flatter than I thought. Our mortgage crisis is killing Deutsche Bank. You still don't think the world is flat?

In a normal time, I don't think economic policy makes a large difference one way or another. But in times of crisis it makes all the difference in the world.

2009 was a tough year, but Australia rose to the challenge of the global financial crisis. It shows what can be done when we all join together and work together, governments of all persuasions state, territory and local; businesses large and small; unions and local communities right across the nation.