EU calls for East Europe transparency

BRUSSELS, March 1 (UPI) -- The European Union says its former communist eastern and central members must be frank about the economic risks they face from the global financial crisis.

As EU member states met in Brussels for a snap summit Sunday, Western members of the EU called for financial transparency from Central and Eastern European members in the wake of a $31 billion financial aid package for eastern Europe, announced Saturday by the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank, the Financial Times reported.

German Chancellor Angela Merkel is reportedly urging the EU's former communist countries to speak frankly about the risks they face from falling exchange rates, over-borrowing in foreign currencies and large current accounts deficits.

The former communist states fear the western institutions that control their financial systems may withhold or withdraw funds from their subsidiaries in the east and are seeking a re-commitment to the integrity of the single European market, the Financial Times said.

Meanwhile, relations between Prague, which holds the rotating EU presidency, and France have deteriorated over accusations of protectionism by the Czech Republic, the EU Observer reported Sunday.