The finance ministers of the G7 nations have held an emergency telephone conference to discuss the US economy and the EU debt crisis and its effects on financial markets

The finance ministers of the G7 nations have held an emergency telephone conference to discuss the US economy and the EU debt crisis and its effects on financial markets.

Seven ministers and their advisers from the G7 nations -- the United States, Britain, Germany, France, Italy, Japan, and Canada -- held a first round of talks over the phone on Sunday, and plan to hold further talks on Monday, Reuters reported.

The delegates also discussed the downgrading of the US credit rating by the Standard and Poor's credit ratings agency (S&P), as well as the sharp fall in stock markets around the world.

The S&P lowered the United States' triple-A rating on Saturday for the first time in the history of the ratings amid concerns over the country's debt.

The ratings agency said the US Congress' deficit reduction plan "did not go far enough to stabilize the country's debt situation."

Last week, Wall Street had witnessed its biggest single-day loss since December 1, 2008, as share prices fell over fears of a new economic meltdown.

European stocks also continue to fall as fears are growing that Europe's debt crisis is spinning out of control with Italy and Spain possibly becoming the next victims of a major crisis. So far, Greece, Ireland and Portugal have already received bailout packages from the European Union.