Raffarin is scheduled for talks on Wednesday principally on fires which have ravaged southern France in recent weeks, and aid which the European Commission could provide.

But the other topical issues are likely to come up. "I would be very surprised if the subject was not on the table," a commission spokesman told AFP when asked about France's budget difficulties.

France is in danger of breaching a three percent of GDP ceiling for its public deficit, established by the 12-member euro zone's Stability and Growth Pact, for the third straight year in 2004.

It was unclear whether Raffarin will hold face-to-face talks with monetary affairs commissioner Pedro Solbes, in charge of policing the increasingly disputed 1997 pact.

The French prime minister is however expected to meet competition commissioner Mario Monti, who is studying whether a 2.8 billion eurobillion dollar) bail-out of Alstom is compatible with EU state aid rules.

"I believe that he will meet Mr. Monti," said the source.

Raffarin and Monti could also take the opportunity to discuss two other issues currently being investigated by Brussels: a hostile takeover bid by Canadian aluminium giant Alcan for its French competitor Pechiney, and French group Lagardere's planned purchase of Vivendi Universal Publishing.

TERRA.WIRE