Brussels  - The European Union should set up a fund of up to 190 billion euros (240 billion dollars) to keep the crisis-hit countries of Central and Eastern Europe from collapse, Hungary said ahead of an EU summit in Brussels on Sunday.

"Despite cautious economic policies, Eastern Europe is being affected disproportionately by the global financial and economic crisis ... Failure to react could cause a second round of systemic meltdowns that would mainly hit eurozone economies," a paper drawn up by the Hungarian government said.

Brussels  - European Union leaders gathered in Brussels on Sunday for a summit designed to shore up the bloc's beleaguered unity in the midst of a damaging row over protectionism and fears that the EU may risk breaking into splinter groups.

"We do not want any new dividing lines; we do not want a Europe divided along a North-South or an East-West line; pursuing a beggar-thy-neighbour policy is unacceptable," Czech Prime Minister Mirek Topolanek, who is to chair the meeting as current holder of the EU's rotating presidency, said on the eve of the summit.

Prague/Brussels  - The Czech Republic, current holder of the European Union's rotating presidency, called for the emergency EU summit on Sunday to reject protectionism as France vowed that a plan to support the auto industry would not break EU rules.

"We do not want any new dividing lines; we do not want a Europe divided along a North-South or an East-West line; pursuing a beggar-thy-neighbour policy is unacceptable. That the internal market remains united is of vital importance," Czech Prime Minister Mirek Topolanek said in a statement on Saturday.

Prague - The current Czech presidency of the European Union has called for a common approach to the financial and economic crisis from EU members, ahead of a special union summit in Brussels on Sunday.

Czech Prime Minister Mirek Topolanek said in a statement from Prague on Saturday that "We do not want any new dividing lines; we do not want a Europe divided along a North-South or an East-West line."

Several Eastern European economies appear to be faring even worse than recession-hit western European states, in the face of rapidly weakening exchange rates and large current account deficits.

Vienna  - Britain, France, and Germany are formulating further sanctions if Iran continues to defy UN Security Council resolutions, but European diplomats said Friday they would not act before the start of direct talks between the United States and Iran.

The Europeans' aim was to "strengthen (US President Barack) Obama's hand during the talks as much as possible," a diplomat said in Vienna.

Brussels  - British bishop Richard Williamson's comments questioning the Holocaust are "unacceptable" and an "attack on reality," the European Union's top justice official said Friday.

But the EU does not yet have concerted rules in place which would allow for his prosecution, leaving the response in the hands of individual governments, EU Justice Commissioner Jacques Barrot told journalists at a meeting of EU justice ministers in Brussels.