This sounds very much like MirrorMask, a wonderful movie. It isn't French or Eastern European, but it does have some bohemian style to it (a bit like The City of Lost Children). So it's not surprising that you might recall the movie like that.
The creature is actually a compilation of several creatures, with the ability to use their stilt-caterpillar shape as a walking prison.
Here are some pictures to jog your memory:
The visual style was very distinctive, and I'm pretty certain this is the one you are thinking of.
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