EU, Bush consider new Iran sanctions KRANJ, Slovenia  President Bush and the European Union on Tuesday threatened tougher financial sanctions against Iran to block it from developing nuclear weapons that could endanger world peace. Bush, at his eighth — and last — summit with the 27-nation EU, said the message to Iran is clear if it refuses to halt its nuclear enrichment program: "We're going to continue to isolate you; we'll continue to work on sanctions; we'll find new sanctions if need be, if you continue to deny the just demands of a free world." The promise of tighter financial sanctions, however, comes as several European nations continue to trade with Iran. EUROPEAN TOUR: Many EU leaders agree with Bush on Iran nukes Italy is Tehran's No 1 trading partner in Europe, recently replacing Germany. German Chancellor Angela Merkel has pressured firms to reduce their financial ties with Iran. Earlier this year, a Swiss power company signed a 25-year contract with Iran to bring Iranian natural gas to Europe. "European governments want tough sanctions," says Simon Barrett, a Mideast analyst in London who closely monitors Iran's activities. "At the same time, though, you have European industry and business that fear losing out." High energy prices are a major factor, and a fear that if companies don't do business with Iran, then others will, says Patrick Clawson of the Washington Institute for Near East Policy. European leaders also worry about being too dependent on Russia for energy, Clawson says. Russia supplies 12% of Europe's oil and 25% of its natural gas. At the EU summit, the leaders said Iran must disclose any nuclear weapons work and allow verification by the International Atomic Energy Agency. The agency last month suggested that Iran had made more progress toward a warhead than previously thought and demanded more information. Bush and the European leaders dealt with other issues, including climate change, rising oil and food prices, the weak U.S. dollar and peace between Israel and the Palestinians. Bush, however, was most passionate about Iran. He didn't answer whether the United States or Israel would launch a pre-emptive strike against Iran to keep it from developing a nuclear weapon. Bush did say, however, that if "you were living in Israel, you'd be a little nervous" if the leader of a neighboring state "says he wants to destroy you." Iran has ignored three sets of sanctions imposed by the United Nations Security Council and continues to enrich uranium. Iran insists the program is to generate electricity. Bush said if Iran ends up with a nuclear bomb, "the free world is going to say why didn't we do something about it at the time? … Now's the time for there to be strong diplomacy." On the issue of climate change, the EU leaders urged Bush to back a global agreement to reduce carbon emissions. Bush insists that China and India, not just developed nations, must also be part of any agreement. Bush also brushed aside the idea that the U.S. government would intervene to strengthen the dollar. He said he believes in a strong-dollar policy, but would let the world market establish its value. He vowed to return to Slovenia some day "as a tourist." "As you know, I'm close to retirement," Bush joked. After the summit, Bush flew to Germany as part of his week-long farewell trip through Europe. Enlarge By Jason Reed, Reuters President Bush says the United States and Europe are thinking alike in working to deny Iran a nuclear bomb. Here, the president is seen with European Commission President Jose Manuel Barroso, right, and European Union President and Slovenia's Prime Minister Janez Jansa, center, at Brdo Castle in Kranj, Slovenia, on Tuesday. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more