France's Sarkozy raises Iran sanction threat

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French President, Nicolas Sarkozy, has repeated his long-standing call for a stronger governance of the global economy. He says he hopes the meeting of the Group of 20 in the US city of Pittsburgh next month, will adopt new rules for the financial world.

Nicolas Sarkozy said, "France will put an international initiative on the table in Pittsburgh to apply rules of transparency, governance and responsibility in G20 countries, which are from now the rules of the financial market place of Paris. We will propose that we strengthen sanctions with regard to banks, which will not play the game. and we are even going to ask the question regarding limits on the level of bonuses."

Switching to Middle East policy. Sarkozy repeated his call for Israel to suspend settlement building in the West Bank. And he added that Europe would back a new summit in the autumn to go along with the start of a new round of peace talks. The French president also said tougher sanctions against Iran would have to be discussed if Tehran does not change its position on its nuclear program.