Union member's smear reported (6)
I believe the answer is:
greece
'union member's' is the definition.
(European Union member)
'smear reported' is the wordplay.
'smear' becomes 'grease'.
'reported' shows a homophone (sound like).
'grease' is a homophone of 'GREECE'.
(Other definitions for greece that I've seen before include "EU country" , "Republic whose mythology is widely known" , "Mediterranean country" , "Hellenic republic" , "Country of southern Europe" .)