Europe's Declining Social Model: A Cautionary Tale for Australia

The intensification of the Eurozone crisis in the European Union coincided with the 2010 federal elections in Australia, which resulted in a hung parliament. The sovereign debt crisis exposed the limitations of the European social model, reliant as it is on a paternalistic state. Taking a cue from Walter Bagehot's classic study of the English Constitution, I argue that the more confrontational Westminster style of government is better equipped to deal with current and future challenges than the consensual democracy that characterises the European Union and its major member states, such as Germany.