Combined with farming aid, they cash in about 40 percent of the bloc's overall package to which they are entitled.

"The money is not lost yet. The new member states have time to learn but time is short," the EU budget commissioner Dalia Grybaskaite told journalists on Thursday (21 September).

She pointed out that while most countries improved in 2005, their progress was "gradual" and may still not be quick enough for them to prepare for even larger sums they will get in 2007.

Warsaw and Prague even saw declining results in their ability to absorb the bloc's funds last year, with Mrs Grybauskaite urging them to make better efforts to improve.

Poland has used €2.7 billion (24.5%) of EU structural funds since May 2004, out of more than €11 billion put aside for the country until 2006, and the Czech Republic has spent €522 million (23.5%) out of €2.2 billion.

Cyprus (19.3%), Latvia (25.2%) and Lithuania (25.6%) are also among the slower EU-fund absorbers, while Slovenia (34.1%) and Hungary (32.6%) have used the highest proportions of money they are entitled to.

While the 2004-2006 funds have no deadline, from 2007 the newcomers - just like the "old" member states - will have up to two years to spend money allocated within the EU's annual budget or they will lose it.

Under the so called 2007-2013 financial perspective - a multiannual EU spending plan - the new member states will become full participants in the existing aid schemes, which means that their EU receipts will be boosted yet further, as will pressure for more efficient spending.