Back to Burma...
I believe the situation is in an impasse until the results from the referendum are known, considered legit and the military junta proves to follow through with the decision, in case it results in democratic elections in the near future.
Myanmar is actually a very good example how Europe can it too be demagogic. In the interest of maintaining good commercial relationships with China, many European countries keep vetoing a sanctions package on Myanmar. All it takes is for one country to say no, for the whole process to not take place. It's shameful that my own country, for instance, advertises respect for human rights but has repeatedly vetoed, along with others.
Myanmar is at a specially weak position as most of its income is through foreign investment (of which a large chunk is European). A ban on investments and commercial sanctions would weaken the regime even further. At the expense of the population, granted. But the Burmese would applaud, I'm pretty sure.
Some anti-sanctions advocates argue China has the capability to replace any of the European foreign investments, basically rendering any measure ineffective. I'm not so sure this is the case, since this is not the best time for China to add yet another file to its already thick dossier on human rights infringement and totalitarian regimes support. But more important, it would serve as a stance; Europe would send the message it does not support the regime and seeks to have it overthrown.
It's possible however that the recent changes in Europe voting process will allow for sanctions to be approved. It will no longer be necessary a consensus across the board. Meanwhile, any country could have unilaterally imposed sanctions on Burma. To my knowledge no European country did, whereas USA has a sanction package in-place for well over 10 years, if i'm not mistaken.
