Australian Treasurer Joe Hockey has told European leaders to "lift their eyes" and engage more with Asia or risk being left behind.
Mr Hockey told the Institute of Economic Affairs in London that Asia was "the fastest growing region in the history of humanity".
"Countries around the world are turning to Asia and I'm afraid Europe is spending too much time focusing on just Europe," the treasurer warned on Monday.
"They are ignoring the massive growth out of Asia.
"Specifically they are ignoring the massive growth of the emerging middle classes in China and India.
"They are going to bring a vast number of new consumers to the global market place."
Mr Hockey said Asia wanted what those in the West already had and the rising middle-classes could afford to pay for it.
Asia was as aspirational and ambitious as Europe once was, he said.
"The first country in Europe that starts to get its act together on engagement with Asia will be a massive beneficiary.
"It (Asia) could be your region as well, you've just got to lift your eyes.
"Because the world is smaller it doesn't matter where you are located."
Mr Hockey said countries could lead the way "or else be reactive and slow, in which case you'll be left behind".
The Liberal MP acknowledged some "after effects" of the global financial crisis were still having an impact in Europe.
But he said ultimately growth in Europe would come from structural reform, given monetary and fiscal policy had limited capacity.
"Europe has to undertake structural reform, it's as simple as that," he said.
The treasurer praised Italy for undertaking difficult labour market reform, noting the Australian electorate "beat up" the former Howard government over WorkChoices.
"We've got to win the electorate back in relation to that sort of reform in Australia," he said.
However, he noted there were other areas of low-hanging fruit he could reach for before needing to tackle "the much harder issue of further substantial labour market reform in Australia".
Mr Hockey insisted the pessimism associated with mainland Europe shouldn't be allowed to infect the rest of the world.
"The United States is doing better ... and I think Asia will continue to grow strongly.
"Headline numbers might come off a bit in some jurisdictions but overall I am absolutely very optimistic about Asia's growth over the next decade."
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