The European Union says it will continue its policy of engagement and rapprochement with Iran despite President Bush's belief that it is a potential terrorist threat.
EU officials say the 15 members share the U.S. concerns and its desire to fight terrorism, but they say the EU policy differs from United States' policy.
They say isolating and punishing governments is not the best way to move forward.
President Bush said in his State of the Union Address Tuesday that Iran, Iraq, and North Korea belong to what he called an "axis of evil" that threaten world peace.