You need to get digital kit to achieve the range you want.
The only EU-legal unlicensed digital PMR walkie-talkie I'm aware of is this one which costs £200 per handset. They have the same transmit power (0.5W) and a similar useful range to analogue PMR446 radios (I have a pair of them on my desk).
There's a market opportunity for cheaper consumer-level digital handsets (standards have been agreed, chipsets are available) but the manufacturers haven't taken it up yet.
Analogue WTs are only good up to 1km
Unlicensed analogue PMR446 handsets, yes. Licensed kit can be much more powerful.