Italy angrily urged Brussels to intervene yesterday after France took a step towards becoming Europe's leading energy powerhouse with a €70 billion domestic merger that would slam the door on an Italian predator.

Italy's prime minister Silvio Berlusconi said the European Union must intervene to ensure Italy's Enel is not unfairly blocked from expanding in France by a planned merger between Gaz de France and Suez.

Mr Berlusconi said he had ordered key ministers to take the steps necessary to respond to French plans to combine state-controlled Gaz de France with private utility Suez, days after Enel hinted at a takeover bid for Suez.

Italy's economy minister Giulio Tremonti will meet the EU's competition commissioner Neelie Kroes on Tuesday and internal market commissioner Charlie McCreevy the next day, a Treasury source said.

The European Commission had sidestepped calls from Italy to challenge France's brokering of a merger of Gaz de France and Suez, saying it needed formal notification to intervene.

As well as provoking Italian charges of protectionism, the French deal, drawn up at lightning speed over the weekend to fend off a threatened takeover by the privatised Italian power firm, has worried France's powerful trade unions.

Union leaders said after meeting French finance minister Thierry Breton they would consider a "common riposte" and the Socialist opposition warned of job losses.

But Breton - already under pressure over his tough defence of steel firm Arcelor from a foreign bid by Mittal Steel - won a reprieve with the European Commission saying France did not appear to be violating European Union rules. - (Reuters)