"While recognizing the general value of referenda as democratic instruments, the EU is, nevertheless, concerned by the decision in Taiwan to proceed with the proposed referendum on joining the UN in the name of Taiwan," the European Union's presidency, currently held by Slovenia, said in a statement.

"The proposed referendum would risk increasing cross-straits tension, to the potential detriment of all concerned, including the people of Taiwan."

The controversial referendum, proposed by the governing Democratic Progressive Party (DPP), will be held alongside the island's presidential elections on March 22, the Central Election Commission announced last month.

Taiwan, under its official name, lost its U.N. seat to the communist mainland in 1971 and is now only recognized diplomatically by around 20 countries.