The Prime Minister says the dramatic political changes being seen in Europe vindicate the stance his government's taken on the economy, after right-wing Nicolas Sarkozy was beaten by socialist Francois Hollande in the French election.
Greece and other parts of Europe are also getting rid of leaders who have promoted austerity.
John Key says it shows if you don't make the hard calls up front, it just becomes harder and harder in tough economic times.
"That's why the government is having a zero budget this year, it's why we had a zero budget last year. It's why we spent very little new extra money in the four years now we've been in office. Yes it's hard when you're doing it, but it means our debt levels don't rack up."
Mr Key says the change in French President shows people want their leader to make the big decisions.
He says if tough decisions aren't made, trouble accumulates.
"In the case of France, I think that they have had some real luxuries for a long period of time, and ultimately they don't want to let those good things go, if you like."
Mr Key says it's the same in Greece where debt has built up to a point where they've had an austerity package forced on them that they don't want.
Photo: Getty Images