EU warns newcomer states they risk losing funds

The European Union's newest members risk losing some of the funds reserved for them in the bloc's joint budget because they are failing to use it quickly enough, the European Commission said Monday. The 10 countries which joined the bloc in May 2004, the Czech Republic included, have only used up 57 percent of the money that was reserved for their regional development projects. However, under existing rules they have only two years to use the money, meaning that funds budgeted in 2005 have to be used by the end of 2007. The EC has urged these countries to improve their administrative management so that they can make use of the EU funds available to them before they expire.