President Barack Obama said Friday that Europe's leaders "understand the urgent need to act" to solve the eurozone crisis, as a rescue plan for Spain's banks appeared in the works.

"The leaders understand the seriousness of the situation and the urgent need to act," Obama told reporters.

"The decisions required are tough but Europe has the capacity to make them... And the sooner that they act and the more decisive and concrete their actions the sooner people and markets will regain some confidence and the cheaper the costs of clean up will be down the road."

But he also warned Greeks that taking the road out of the eurozone after their June 17 elections would only make things worse for them.

"We recognize the sacrifices that the Greek people have made, and European leaders understand the need to provide support if the Greek people choose to remain in the eurozone," Obama said.

"But the Greek people also need to recognize that their hardships will likely be worse if they choose to exit from the eurozone."