The European Union (EU) will take more stringent action against the Burmese junta if it fails to act on an agreement reached last week on steps to restore democracy before the upcoming Asia-Europe Meeting's (Asem) summit in Hanoi on Oct 8 and 9.

In a statement, the EU said its foreign ministers had told Burmese representatives that "existing measures... will be maintained and will be made stricter" if sufficient progress is not made on three conditions set during their meeting in Tullamore, Ireland.

The EU has demanded the release of pro-democracy leader Aung San Suu Kyi, the participation of her National League for Democracy (NLD) in the national convention on the junta's 'road map' to democracy, and open debate during such meetings.

The EU said it would extend its visa ban to apply to high-ranking military personnel and their family members, while EU-registered firms would not be permitted to finance Burmese state-owned companies if the junta does not comply.

"In international organisations, the EU shall vote against extending loans to Burma," it said, adding that specific proposals would address the issue of illegal logging and export of teak from Burma.

The statement also said the Asem Summit has provided the EU with an opportunity to confront Burma over concerns on human rights violations and the need for democratic reform.

"The level of Burmese participation at the summit will have to be below the level of head of state or head of government," it said.

Adding that the Burmese should not have to suffer because of the junta's excesses, the EU has pledged to provide direct support in the areas of health and education.

Burma, whose military junta refused to recognise the overwhelming victory by the opposition NLD in the 1990 elections, has remained a thorn in the relationship between Europe and Asia since Rangoon joined Asean seven years ago.