With the European debt crisis looming over the world economy, Australia must ensure that it will not replicate the financial missteps many countries in Europe have committed, says Opposition Leader Tony Abbott.

Abbott also reminded Prime Minister Julia Gillard that focusing on domestic concerns would serve her better than airing her unsolicited remarks on the eurozone situation.

Last week, Gillard called on European leaders to act swiftly on the region's economic issues in order to prevent the debt spiral hounding Greece, Italy, Ireland, Portugal and Spain from engulfing the rest of the world.

"During the recent G20 meeting in Cannes, Prime Minister Gillard quite rightly warned Europe to get its fiscal house in order and admonished European leaders on the need for determined action to avert a new financial crisis with global repercussions," Abbott was quoted by the Australian Associated Press as saying Thursday in London, where he was attending the Policy Exchange conference.

The prime minister's action, however, was characterised by Abbott as wholly unnecessary as he advised her to instead mind her own business back in Australia.

"There has been a gap between what we preach and what we practice ... Unfortunately, at least under the current government, we've been better at giving advice to others than at taking it ourselves," Abbott reminded Gillard.

It would be more fruitful, Abbott added, if the Australian government would take in "the lesson of contemporary Europe, which is ... harsh judgment awaits countries whose governments spend what they don't raise and borrow what they can't repay."

While Australia is reaping the benefits of its trade with new economic power China, Abbott contends that political and economic leaders must avoid complacency and ensure that there is a viable life after the current resources boom that spared Australia the worst of the global financial crisis in 2008.

Abbott warned "Australians shouldn't assume that the crisis now afflicting the weaker economies of Europe could never happen in our region," and stressed that over the long haul "it's our own efforts that will determine whether Australia remains a first-rate economy."

He admitted though that at present, Australia's trading relations with China provide a buffer that insulates the nation from much of the economic concerns ravaging many countries across the globe.

Amidst the mining boom, which is anchoring the Australian economy on a solid ground, Abbott refused to discount the possibility of a new round of global slowdowns, specifically in Europe and North America.

And there may come time, sooner rather than later, that "China's consumption phase is likely to require considerably less Australian coal and iron ore than its investment and export one."

Should that happens, the Liberal Party chief is hopeful that Australia will not be caught off guard.