No word on what kind of sanctions the president and the Europeans are willing to place on Iran for not suspending their enrichment activities or allowing more inspections but they probably won't amount to much:

Following a two-hour meeting that touched on Iran and a host of issues from climate change to trade, Bush and his European counterparts indicated they were prepared to go beyond current United Nations sanctions to try to ensure Iran does not develop a nuclear weapon.

The Islamic Republic insists its nuclear research and facilities are solely for peaceful purposes. But at the same time Tehran has stymied international inspectors from verifying the extent and nature of its program.

"Now is the time for there to be strong diplomacy," Bush said after the meeting, appearing alongside Slovenian prime minister Janez Jansa and European Commission President Jose Barroso.

"They can either face isolation, or they can have better relations with all of us," Bush said. "We'll find new sanctions if need be."

A draft statement from the U.S.-E.U. summit, which was obtained by the Associated Press, indicated that the allies were planning to target Iran's banking system unless Iran suspends its uranium enrichment program.