Brussels - The European Union's top economic official Monday threatened to take action against France after latest estimates show the country risks breaching the eurozone's budget deficit limit next year.

According to the European Commission's spring economic forecasts, France's budget deficit to gross domestic product (GDP) ratio will reach the upper limit of 3.0 per cent in 2009, having risen to 2.9 per cent in 2008 and by a higher-than-anticipated 2.7 per cent a year ago.

"Any deviation from that forecast in public spending ... would lead to a possible excessive deficit in France," said EU Economic and Monetary Affairs Commissioner Joaquin Almunia.

Noting that France was the only country within the 15-member eurozone to post such a high budget deficit to GDP ratio, Almunia said breaching the 3 per cent limit would represent "a clear case to consider the possibility of utilizing instruments which are in our hands for cases like these."

A scheduled May 13 meeting will provide Eurozone finance ministers with a first chance to discuss the case.

The launch of an infringement procedure against France would deal the country a major blow just as it prepares to take over the six-months rotating presidency of the EU, on July 1st.

Short of an infringement procedure, EU officials and ministers could alternatively decide to issue a milder "early warning" or "policy advice" against France. (dpa)