BRUSSELS, Jan 11 (Reuters) - The European Union on Friday condemned the arrest of 27 demonstrators in Belarus, including the leader of an opposition party and the head of a business group.

"I am dismayed by reports of the recent series of arrests ...I roundly condemn such measures," EU External Relations Commissioner Benita Ferrero-Waldner said in a statement.

The arrests were made on Thursday when thousands of angry Belarussian businessmen demonstrated outside government offices against a decree by President Alexander Lukashenko that puts restrictions on hiring staff. Many business owners say the effect of the decree would be to increase their tax burden.

Among those detained were two activist leaders, Anatoly Shumchenko, leader of the Perspektiva business group, and Anatoly Lebedko, the leader of the liberal United Civil Party.

They were sentenced to 15 days' jail but the Interior Ministry has called for tougher punishment, saying police officers were beaten by protesters.

The West accuses Lukashenko of crushing human rights by jailing opponents, shutting down independent media and rigging polls, including his own re-election to a third term in 2006.

Both the European Union and the United States have banned Lusashenko from visiting their countries.

Late last year, however, Brussels cautiously praised the Belarussian authorities for releasing some jailed activists and for getting police to show restraint at demonstrations.

The EU has also proposed an aid programme -- provided Belarus introduces democratic change and releases what Brussels calls political prisoners, including a candidate who challenged the president in last year's race.

The United States tightened sanctions against Belarus last November, forbidding a state energy company to do business in the United States, and has threatened further measures. (Reporting by David Brunnstrom, editing by Tim Pearce)

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