City firm DLA has revealed a three-year plan to expand into eastern Europe following its integration with a leading Austrian firm, targeting in particular countries that are preparing to enter the European Union (EU).

Andrew Darwin, head of DLA's transactional division, said the firm had joined up with 16-partner Weiss-Tessbach - which has seven offices across eastern Europe - as part of a plan to expand existing branches and open new branches in the region because EU accession had become a 'big issue'.

The firms' next step now will be to open a Belgrade office - Mr Darwin said this would happen 'in a matter of months' - but in the longer term they are also looking to expand into countries such as Poland.

'Czechoslovakia and Hungary are about to join the EU in 2004 so we want the ability to sell into those territories as well as in Austria, which has been an EU member since 1995,' he added.

Mr Darwin said newly-fledged EU states held a wealth of opportunities for law firms.

'In the longer term, EU accession goes hand in hand with project finance, infrastructure investment and banking,' he said.

'Where a country is having to develop rapidly, there is a lot of interest in development from the government and corporations.'

Weiss-Tessbach regional managing partner Stefan Eder said the integration was a natural step.

'It will bring DLA a wealth of opportunities in new emerging markets.'