Finland's prime minister has promised his country will not seek to implement the EU constitution by the 'back door' during its Council presidency.

Addressing MEPs on Wednesday, Matti Vanhanen pledged to step up the debate on the bloc's future.

And he said that there should be more co-operation on justice and home affairs issues.

Vanhanen also pledged a renewed focus on cutting red tape on European businesses and boosting competitiveness.

"During its presidency, Finland will endeavour to turn the union's gaze outwards, and forwards," he said.

"We have to consider what kind of a union we want in 10 to 20 years time and how to achieve it.

"As Europeans, we must identify what historical forces for change are at work in the period we live in, and then we must respond to them and make them our allies.

"Finding ways to respond to globalisation is a major challenge for the EU."

He also warned of the EU's "diminished legitimacy, its perceived lack of purpose and its dwindling credibility among its citizens".

While European citizens might not fully understand the work of the EU, he added that politicians should also "deliver results that impact on people's lives in ways that they can see".

"Increasing the union's effectiveness will require some bold decisions from Europe's leaders and decision-makers," said Vanhanen.

"We cannot just think of the here and now, and the next elections, we need to consider the interests of future generations.

"That means taking painful decisions now to help create a better future. We must also be prepared to give some ground when defending national positions and think about Europe's interests as a whole."

Vanhanen told MEPs that he wanted to "take the discussion on the union's future forwards".

"This will include debate on the very concrete question of the future of the constitutional treaty and enlargement," he added.

"Finland will start consultations on the future of the treaty during its presidency.

"These consultations with the member states and the EU Institutions will form the basis of the report to be presented in the first half of 2007 under the German presidency."

He added: "I would also like to emphasise that by focusing on co-operation in the field of police and criminal matters, we are not trying to score easy points.

"Our intention is not to smuggle the constitutional treaty in through the back door as the necessary changes can be introduced on the basis of the Treaty of Nice.

"Finland also wants to reinforce implementation of the principle of mutual recognition in judicial co-operation.

"When judgments and decisions by judicial authorities in other member states are executed as they stand, this can help in practical ways with the investigation of large-scale cross-border crime and can speed up legal proceedings."