Justin Harrison is consoled. (Getty Images)

By Alex Lowe, PA Sport, Sydney

Eddie Jones called on all of Australia to show pride in the Wallabies' achievements after they were pipped in the World Cup final by a Jonny Wilkinson drop-goal in the last minute of extra-time.

Few gave Australia much realistic hope of passing the semi-finals, where they faced New Zealand, and as the pool stages of the World Cup unfolded, some even doubted the defending champions would even get that far.

After all, they scraped past Ireland by one point and were held 9-9 at the interval in their quarter-final against Scotland.

But coach Jones shouldered the criticism, never reacted angrily or negatively to it because he knew deep down that Australia were on a programme aimed at peaking in the last four and the final.

That is just what happened - only it was not quite enough.

"This side has shown enormous resolve. I think it's a side the country should be proud of," said Jones.

"It's a side that has lost some battles to try and win a war, but in the end we lost the war as well.

"But I tell you what, we went down with all guns blazing.

"We're shattered. The best team won on the night. We weren't quite good enough. We went very close but not good enough on the night.

"I am extremely proud. The guys have worked very, very hard."

Jones succeeded Rod MacQueen as coach of Australia after the series win over the British Lions, when the Wallabies were undoubtedly the finest side in the world.

There was only one way to go as Jones set about flushing new blood into the system over a tough two-year period.

While Australia came agonisingly close to pulling off a stunning victory, Jones believes they have taken substantial strides these last two years.

"If you look at our starting XV, only two of those guys played in the 1999 World Cup (George Gregan and Stephen Larkham)," said Jones.

"I'd say 70-80% of our squad will be strongly in contention for the next World Cup. There are some real positives for the future."

While Jones was rebuilding his Wallabies and John Mitchell doing the same with New Zealand, northern hemisphere sides have knuckled down at improving the basics.

England won nine line-outs against the throw, overpowered Australia in the scrum and Jones believes that is biggest difference between the hemispheres.

"What I think has happened over the last four years since Australia won the World Cup is that northern hemisphere sides, particularly France and England, have really honed their technical and tactical skills in the set-piece and gone ahead of the southern hemisphere countries in that way.

"You saw tonight that their confidence in those areas was outstanding.

"I think they are an outstanding team. They play to their strengths. They have got a very good forward pack, some good, hard running backs and should be lauded as the best team in the world.

"They are extremely well coached, extremely well prepared and have a huge amount of talent within their squad.

"They had to play well. We certainly put them under the pump and in the end just weren't quite up to it."

Captain George Gregan agreed and was quick to praise Clive Woodward's side for their achievement in becoming the first northern hemisphere side to win the World Cup.

"It was a massive final wasn't it? It went to extra-time, two world class teams going at it. Congratulations must be extended to the English team," he said.

"They delivered under pressure and they delivered when it counted.

"But I am so proud of my guys, we gutsed it out, we fought back, we were down 14-5, we brought it back to extra-time.

"To all the support here, both English fans and Australian fans, for us as players it's the high of our career and thank you for making it such a wonderful night."

Australia trailed 14-5 at the interval despite moving ahead when Stephen Larkham sent a pin-point cross-field kick for Lote Tuqiri to collect and touch down.

But as England crumbled in the second-half, Elton Flatley maintained his cool and landed three crucial penalties - the last of which was in the 80th minute - to force extra-time.

England moved ahead with another penalty, only for Flatley to equalise once more before Wilkinson, unperturbed he had already missed three drop-goal attempts, lined up another and scored.

Gregan could see it coming.

He feared the worst when, after Flatley's penalty tied the scores at 17-17 with only minutes remaining, Australia failed to win decent field position and he saw Wilkinson lining up in the slot.

At first the England fly-half was on the 10-metre line but after Matt Dawson had scampered 20 metres and Martin Johnson driven on, Wilkinson was left with a simple right-footed effort.

"I knew when Flats' one went over, we had a couple of minutes to play. We were still in our half of field and you could see Jonny Wilkinson's position.

"They took it forward and the rest is history.

"All this talk before the match about them being boring - they are very, very professional and do what they have to do to get the victory and that is why they are world champions."