Although 2008 and 2011 are only three years apart, Australian Treasurer Wayne Swan said on Monday that governments now are better prepared, banks are stronger and there are plans in place to address a looming second round of global financial crisis.

"So the question the world is now asking is whether Europe's leaders have the courage and conviction to manage the new crisis with the boldness and determination that was evident in London two years ago," The Sydney Morning Herald quoted Mr Swan's address at an Austrade business forum in London.

He said that despite some steps recently taken by U.S. and European leaders and good progress by G20 finance minister, there is still cause for serious concern. Mr Swan pointed to the International Monetary Fund downgrade of global growth forecasts in September which indicated bleak future prospects are the "new normal of global volatility."

He urged Europe to get its house in order immediately by putting in place credible plans for fiscal consolidation.

"The time for half measures, the time for finger pointing has long passed," Mr Swan stressed.

The European leaders are slated to discuss their plan on how to deal with the eurozone's debt crisis in the European Council and Eurozone summit meeting on Oct 23.

"I'm very hopeful that we will see the political will in the leadership of Europe to deliver on that at this meeting this coming weekend.... I'd be very fearful if they don't deliver in some of those key areas as to what the outcome would subsequently be for markets and corporates," Bloomberg quoted Mr Swan.

He hinted of more room to cut Australia's cash rate because of the availability of more levers compared to advanced nations to withstand the anticipated fallout from the worsening of the European situation.