John Key's stunning announcement that he is standing down has turned politics on its head and almost certainly reduced National's chances of winning a fourth term.

His personal popularity throughout his term in office was a main factor in his party's election successes, and it will surely miss him when it goes to the country next year.

However much Mr Key says the party is well positioned to win again, he has given Labour's Andrew Little a much better chance of becoming the next prime minister.

Mr Key has endorsed his deputy, Bill English, to succeed him.

English was leader of the opposition when National suffered a devastating loss in 2002, and he was rolled by Don Brash.

Mr Key insists the political world was different then, the cycle was running against English and now it will be running with him.

He could be right, but National's task has just got a lot harder.

It would be good for the party if English puts his hand up and isn't challenged, that way there won't be blood on the floor and no wounds to heal.

If he is challenged, Steven Joyce and Judith Collins are the obvious ones to do it, with Amy Adams a possibility.

And if English becomes prime minister, Joyce would be the likely deputy and minister of finance.

Mr Key was right to announce his decision now.

He couldn't have fought the next election pretending he was going to run a full fourth term, and then quit part way through.

As he said, he has been honest with New Zealand throughout his term and there was no way he was going to change now.

Mr Key spent nearly 40 minutes of his press conference explaining why he was standing down, saying he had never been a career politician and it was time for a change.

He said his wife Bronagh didn't give him an ultimatum, and would have backed him all the way if he had decided to run for a fourth term.

Mr Key has been an outstanding prime minister, although the opposition would differ on that.

He was the main reason National retained its level of support through three elections, and his departure leaves a gulf that's going to be hard to fill.

Malcolm Turnbull says his New Zealand counterpart is leaving the country's economy in a very strong state.

The prime minister says Mr Key has been a great role model as a reforming PM, who's won and retained strong public support for his economic reform.

Labor leader Bill Shorten says Mr Key is a civilised conservative and has been a good friend to Australia.

- with Reuters</s>WELLINGTON, New Zealand (AP) — New Zealand Prime Minister John Key resigns in surprise move after 8 years as leader.</s>Auckland, New Zealand (CNN) New Zealand Prime Minister John Key has resigned, in a move that shocked many observers.

Key had been in power since 2008, and leader of the ruling National Party since 2006.

"Ten years at the top is a long time," he told reporters in Wellington on Monday, adding that he owed it to his family to step aside.

"A lot of leaders stay at the top too long."

Key, who has dominated New Zealand politics for years, winning three terms as prime minister, said he had "given everything" to the job.

"All of this has come at quite some sacrifice for the people who are dearest to me -- my family," he added.

He said that his adult children had faced "an extraordinary level of intrusion and pressure because of their father's job."

Key and his wife Bronagh have been married since 1984. They have two children, model and DJ Max, and Stephanie, an art student.

The National Party will hold a special caucus on Monday, December 12 to select a new leader, Key said, after which he will tender his resignation to the Governor General.

Key said he would support whomever was chosen, but said that his deputy prime minister and finance minister Bill English "would win the election in 2017."

English previously led the National Party to its worst-ever electoral defeat in the 2002 election.

Key said he will stay in his parliamentary seat long enough to avoid a by-election.

'Say it ain't so bro'

Opponents and supporters of Key voiced their shock at his announcement.

"John Key has served New Zealand generously and with dedication," wrote Labour Party leader Andrew Little. "I wish him and his family the best for the future."

Green Party co-leader Metiria Turei said she "fought every day against John's politics but always supported his right to be a dad (and) a husband first. I wish him and his family well."

Australian Prime Minister Malcolm Turnbull told reporters in Canberra that when he heard Key was about to resign he sent him a text message: "Say it ain't so bro."

New Zealand's political commentators appeared to agree that Key's style of exit was to be expected of him.

Jane Patterson, political editor at state broadcaster Radio New Zealand said Key had to resign ahead of the next election if he did not plan to see out another term. "His popularity is such that people have voted for National on the basis that he is prime minister," she commented on air.

"No one will begrudge Key leaving for family reasons," she said. "But the love affair between Key and the New Zealand public has been a long one. And while the initial ardor might have cooled, most kiwis would have been surprised to find out that the marriage is over."

But Young said Key's insistence that he could not have misled the public by pretending he could have completed a fourth term was true to form.

"He has almost always been a winner in life. He wants to go out as winner on his terms," she said. She suggested that New Zealand's opposition and Key's own caucus might not share his optimism that the National Party would do as well without him.

"He will be able to say he's retired undefeated as prime minister," Hooton said. "Broadly in a policy sense, people should interpret this as stability, it is almost certain that Bill English will become prime minister based on John Key's vote."

But Hooton said the National Party would be in a more difficult position without Key helming it. "John Key has won three elections in a row, that's really been based on his talent, his unique connection with the New Zealand people," he said.

"And that's because Labour will come off eight years on life-support as of today. This is genuinely massive for the opposition. They have a much better chance now that Key, the unmovable road-block, has moved himself out of the way."</s>New Zealand's popular Prime Minister John Key stunned the nation on Monday when he announced, in a breaking voice, he was resigning after eight years as leader.

Key had been widely expected to contest his fourth general election next year. But he said he wanted to ensure he didn't make the mistake that some other world leaders have done, and instead wanted to leave while he was on top of his game.

Speaking in a shaking voice, Key said he had made personal sacrifices for the job and the role had taken a toll on his family.

Key said his National Party caucus would meet Dec. 12 to decide on a new party leader and prime minister, and that he expected to formally submit his resignation to the Governor-General that same day.

He said he would back his deputy Bill English to take over. English said he would likely decide in the next day or two if he would seek the role.

The New Zealand dollar fell by nearly 1 percent on the news and was trading at $0.71 U.S.

Australian Prime Minister Malcolm Turnbull said he'd sent Key a short message: "Say it ain't so, bro."

"John Key is one of the most outstanding national leaders in the world today," Turnbull told reporters. "He has done an extraordinary job for New Zealand. He is somebody that all of us, right around the world, leaders in countries large and small, draw inspiration from."

New Zealand's opposition leader Andrew Little said the decision had taken everybody by surprise.

"He is entitled to be recognized for what he has done for New Zealand," Little said. "He's been there through some pretty difficult times."

Key was a successful currency trader before turning to politics. He was elected to the nation's parliament in 2002 and enjoyed a quick rise, becoming leader of his center-right opposition party in 2006. He won his first general election and became prime minister in 2008.

He won subsequent elections in 2011 and 2014 and retained unusually high popularity ratings. His party was a clear favorite to win the most votes at next year's election, at least until his announcement on Monday.

Key said that steering the country of 4.7 million through the economic crisis of 2008 and on to improved fortunes was a proud accomplishment.

"Very few countries are in the financial position we are in," Key said. "We're strong, we're in surplus, we're growing, we're creating jobs, we're doing well."</s>(CNN) New Zealand Prime Minister John Key has resigned, in a move that shocked many observers.

Key had been in power since 2008, and leader of the ruling National Party since 2006.

"Ten years at the top is a long time," he told reporters in Wellington on Monday, adding that he owed it to his family to step aside.

"A lot of leaders stay at the top too long."

Key, who has dominated New Zealand politics for years, winning three terms as prime minister, said he had "given everything" to the job.

"All of this has come at quite some sacrifice for the people who are dearest to me -- my family," he added.

He said that his adult children had faced "an extraordinary level of intrusion and pressure because of their father's job."

Key and his wife Bronagh have been married since 1984. They have two children, model and DJ Max, and Stephanie, an art student.

The National Party will hold a special caucus on Monday, December 12 to select a new leader, Key said, after which he will tender his resignation to the Governor General.

Key said he would support whomever was chosen, but said that his deputy prime minister and finance minister Bill English "would win the election in 2017."

English previously led the National Party to its worst-ever electoral defeat in the 2002 election.

Key said he will stay in his parliamentary seat long enough to avoid a by-election.

'Say it ain't so bro'

Opponents and supporters of Key voiced their shock at his announcement.

"John Key has served New Zealand generously and with dedication," wrote Labour Party leader Andrew Little. "I wish him and his family the best for the future."

Green Party co-leader Metiria Turei said she "fought every day against John's politics but always supported his right to be a dad (and) a husband first. I wish him and his family well."

Australian Prime Minister Malcolm Turnbull told reporters in Canberra that when he heard Key was about to resign he sent him a text message: "Say it ain't so bro."</s>WELLINGTON, New Zealand—New Zealand’s popular Prime Minister John Key stunned the nation on Monday when he announced, in a breaking voice, he was resigning after eight years as leader.

Key had been widely expected to contest his fourth general election next year. But he said he wanted to ensure he didn’t make the mistake that some other world leaders have done, and instead, wanted to leave while he was on top of his game.

Speaking in a shaking voice, Key said he had made personal sacrifices for the job and the role had taken a toll on his family.

Key said his National Party caucus would meet on December 12 to decide on a new party leader and prime minister, and that he expected to formally submit his resignation to the governor general that same day.

He said he would back his Deputy Bill English to take over. English said he would likely decide in the next day or two if he would seek the role.

The New Zealand dollar fell by nearly 1 percent on the news and was trading at $0.71.

Australian Prime Minister Malcolm Turnbull said he’d sent Key a short message: “Say it ain’t so, bro.”

“John Key is one of the most outstanding national leaders in the world today,” Turnbull told reporters. “He has done an extraordinary job for New Zealand. He is somebody that all of us, right around the world, leaders in countries, large and small draw inspiration from.”

New Zealand’s opposition leader Andrew Little said the decision had taken everybody by surprise.

“He is entitled to be recognized for what he has done for New Zealand,” Little said. “He’s been there through some pretty difficult times.”

Key was a successful currency trader before turning to politics. He was elected to the nation’s parliament in 2002 and enjoyed a quick rise, becoming leader of his center-right opposition party in 2006. He won his first general election and became prime minister in 2008.

He won subsequent elections in 2011 and 2014, and retained unusually high popularity ratings. His party was a clear favorite to win the most votes at next year’s election, at least until his announcement on Monday.

Key said steering the country of 4.7 million through the economic crisis of 2008 and on to improved fortunes was a proud accomplishment.

“Very few countries are in the financial position we are in,” Key said. “We’re strong, we’re in surplus, we’re growing, we’re creating jobs, we’re doing well.”

New Zealand is enjoying relatively robust annual GDP growth of over 3 percent and the unemployment rate has fallen below 5 percent, thanks in part to growth in tourism and construction.

Key also talked about the importance of standing beside the people of Christchurch after an earthquake in 2011 killed 185 people. “Simply put, it has, for me, been the most remarkable, satisfying and exciting time of my life,” he said. “But despite the amazing career I have had in politics, I have never seen myself as a career politician.”

He said the role came with costs.

“For my wife Bronagh, there have been many nights and weekends spent alone,” he said. “My daughter Stephie and my son Max have transitioned from teenagers to young adults while coping with an extraordinary level of intrusion and pressure because of their father’s job.”

He said he wasn’t sure what life after politics would bring, other than he would probably take up positions on a couple of company boards and accept international speaking engagements. He said he would remain on as a member of parliament long enough that he wouldn’t force a special election ahead of next year’s general election.

“All I can say is that I gave it everything I had,” he said. “I left nothing in the tank.”</s>WELLINGTON: Popular New Zealand Prime Minister John Key announced his shock resignation Monday, saying it was the right time to go after eight years in the job.

“This is the hardest decision I’ve ever made and I don’t know what I’ll do next,” he told a news conference, adding that he had never seen himself as a career politician.

“Being leader of both the party and the country has been an incredible experience.”

Key, a former Merrill Lynch currency trader, had recently marked his eighth anniversary as prime minister and 10th year as leader of the centre-right National Party, which is set to meet next week to elect his successor.

Deputy Prime Minister Bill English is widely seen as the favourite to take over.

“I feel like I’m going out on top,” Key said, pointing to spending more time with his wife Bronagh and children Stephanie and Max as a key consideration.

“It would be easy to say I have made this decision solely to rediscover the personal and family life I once had, and that is a factor, but it is one among many,” he said.

“Over the years I have observed many leaders who, in a similar position, fail to take this step. I can understand why. It is a hard job to leave.

“But, for me and the National Party, this is a good time to go. Party membership is high and the party is well-funded.

“The caucus is talented and eager to serve, and one of the achievements of which I am proud is having built with my colleagues a Cabinet team that is capable, committed and cohesive. That is a great legacy for National’s next leader.”

Key came into politics relatively late, entering parliament in 2002 and assuming leadership of the National Party four years later. By 2008 he had ended nine years of Labour Party rule, ousting then-prime minister Helen Clark.

He won plaudits for his leadership during a string of crises in his first term, including a devastating earthquake in Christchurch in February 2011 which claimed 185 lives.

He also steadied the economy after the Global Financial Crisis without resorting to hard-line spending cuts, instead taking a steady, pragmatic approach that saw the budget return to surplus for the first time since 2008. AFP</s>WELLINGTON, New Zealand — New Zealand’s popular Prime Minister John Key stunned the nation on Monday when he announced he was resigning after eight years as leader.

Key had been widely expected to contest his fourth general election next year. But he said he wanted to ensure he didn’t make the mistake that some other world leaders have done, and instead wanted to leave while he was on top of his game.

Speaking in a shaking voice, Key said he had made personal sacrifices for the job and the role had taken a toll on his family.

Key said his National Party caucus would meet Dec. 12 to decide on a new party leader and prime minister, and that he expected to officially hand in his resignation that same day.

Key said he would back his deputy Bill English for the role.

The New Zealand dollar fell by nearly 1 percent on the news and was trading at $0.71 U.S.

Key was a successful currency dealer before first he became a lawmaker in 2002. He had a quick rise, becoming leader of his center-right opposition party in 2006 and then winning his first general election to become prime minister in 2008.

He won subsequent elections in 2011 and 2014 and retained remarkably high popularity ratings. His party was a clear favorite to win again at next year’s election, at least until his announcement.

Key said that steering the country of 4.7 million through the economic crisis of 2008 and on to relative economic success was a proud accomplishment. He also talked about the importance of standing beside the people of Christchurch after an earthquake in 2011 killed 185 people.

“Simply put, it has, for me, been the most remarkable, satisfying and exciting time of my life,” he said. “But despite the amazing career I have had in politics, I have never seen myself as a career politician. I have certainly never wanted my success in politics to be measured by how long I spent in Parliament.”

But he said the role came with costs.

“For my wife Bronagh, there have been many nights and weekends spent alone, many occasions that were important to her that I simply could not attend,” he said. “My daughter Stephie and my son Max have transitioned from teenagers to young adults while coping with an extraordinary level of intrusion and pressure because of their father’s job.”

He said he wasn’t sure what life after politics would bring, other than he would probably take up positions on a couple of boards. He said he would remain on as a member of parliament long enough that he wouldn’t force a special election ahead of next year’s general election.

“All I can say is that I gave it everything I had,” he said. “I have left nothing in the tank.”</s>New Zealand Prime Minister John Key unexpectedly announced his resignation on Monday, saying it was the “right time” to leave politics after more than eight years in power.

Key said he had no immediate future plans, but told reporters he would stay in parliament long enough to avoid a by-election for his seat.

“There is no way I could have served out a full fourth term,” Key said at his weekly press conference in Wellington, citing family reasons for his departure. “I think in reality if I served six months or a full-year, I would have inevitably had to look down the barrel of a camera and say ‘I will serve a full three years’. I would therefore have mislead the public and that is not the way of operating.”

Key, a former foreign exchange dealer who worked at firms including Merrill Lynch, won office for the National Party in 2008, ending the nine-year rule of Labour’s Helen Clark.

He won praise with his stewardship of the NZ$240-billion ($170-billion) economy in the aftermath of the global financial crisis and two devastating earthquakes around Christchurch.

The National Party caucus will hold a meeting on December 12 to decide the new party leader and prime minister.

Key said he would vote for his deputy and finance minister Bill English to take over. ($1 = 1.4112 New Zealand dollars)</s>WELLINGTON, New Zealand -- New Zealand's popular Prime Minister John Key stunned the nation early today when he announced he was resigning after eight years as leader.

Key had been widely expected to run for a fourth term next year. But he said the job had taken a toll on his family, and he wanted to leave while he was on top of his game.

Key said his National Party caucus would meet Dec. 12 to decide on a new party leader and prime minister, and that he expected to formally submit his resignation that same day.

He said he would back his deputy, Bill English, to take over. English said he would likely decide in the next day or two if he would seek the role.

New Zealand's opposition leader, Andrew Little, said the decision took everybody by surprise.

"He is entitled to be recognized for what he has done for New Zealand," Little said.

New Zealand is enjoying relatively robust annual GDP growth of over 3 percent and the unemployment rate has fallen below 5 percent, thanks in part to an increase in tourism and construction.

Australian Prime Minister Malcolm Turnbull told reporters he'd sent Key a short message: "Say it ain't so, bro."
John Key resigns as the Prime Minister of New Zealand and leader of the National Party after 8 years as PM and 10 years as party leader due to personal reasons.