As the political and economic arbitration intensified in the EU, other nations around the globe remained wary of possible effects of the European crisis.

Australian Prime Minister Julia Gillard expressed her concern about the ongoing debt crisis during the opening of the Commonwealth Business Forum in Perth.

She said that countries in the region that strived to put in place practical financial measures and a structure to achieve balanced growth faces the risk of being affected by the European contagion, according to the Business Spectator.

Gillard agreed that prompt solutions would have to be undertaken in reaching a definitive solution for the sovereign debt crisis in the Euro zone.

Australia has managed to stay resilient in the wake of the global economic slump because of the capacity of the nation's leaders to keep down the unemployment rate, its potent banking system and a huge investment system.

Bloomberg has cited Australia's efficient response to the financial crisis and economic reforms that kept its economy flourishing.

Observers said that Australia's economy has gained due to increased demand from developing nations including China and India for iron ore, coal and natural gas. The nation's gross domestic product expanded more than the projections made by economists during the last quarter of 2010.

Gillard has reiterated the need for EU heads of state and government to determine the balance between dealing with quick-fix risks and enhancing economic growth in the future. She cited how the Australian nation had always supported structural economic improvements on a worldwide level.

Meanwhile, The Reserve Bank of Australia has hinted that it may lower cash rates during the next policy meeting citing inflation as the main cause for this decision.

The Business Spectator reported that RBA deputy governor Ric Battellino announced that it may need to lower the official cash rate because of the "cooling of domestic inflation and increasingly global economy."

Battellino declared that this week's consumer price index (CPI) data, to be released by the Australian Bureau of Statistics, would provide further information on whether to ease monetary policy."

"Inflationary pressures, which had declined through 2010, appeared to pick up clearly in the first half of 2011 and the prospects were that inflation would rise to above the target range of two to three per cent over the next couple of years," he added.

He described the situation in the country as moderately stable but needed regular monitoring because of the global conditions.