John Howard, the Australian Liberal prime minister decisively defeated by Kevin Rudd and the Labor party in Saturday’s general election, was neither as good at running the economy as his supporters claimed nor as bad at foreign policy as some of his critics insisted.

Australian businesspeople and investors have rightly greeted Mr Rudd’s victory with equanimity. His fiscal policies look as conservative and sensible as those of his predecessor; the only significant change is likely to be in labour policy, where the incoming government wants to live up to its name and tilt the balance back in favour of employees. The foundations of Australia’s economic success during Mr Howard’s 11 years in power were in any case laid by his Labor predecessors and enhanced by strong demand for the country’s minerals.