WASHINGTON: US President Barack Obama discussed the latest development in the eurozone crisis Friday with France's President Nicolas Sarkozy and German Chancellor Angela Merkel, the White House said.

Obama “welcomed the continued leadership of President Sarkozy and Chancellor Merkel in addressing the challenges facing Europe's economy,” a White House statement said.

The president spoke to the French and German leaders in separate phone calls as Italy proposed an emergency G-7 meeting while euro lending costs soared and stock prices plummeted.

Italian Prime Minister Silvio Berlusconi warned after talks with Sarkozy “that the world has entered a global financial crisis that concerns all countries.” The White House did not elaborate on the substance of Obama's conversations with Sarkozy and Merkel.