The European Commission, flexing its muscles ahead of a critical deadline, is set to take legal action today against seven countries for lagging behind in throwing open their telecoms markets to competition. The European Union executive plans to charge Belgium, Denmark, Germany, Greece, Italy, Luxembourg and Portugal with failing to implement properly an EU telecommunications liberalisation plan, Commission officials said.

The plan requires most EU countries to abolish all state monopolies by January 1st, 1998.

The move, which could ultimately end up before the European Court of Justice, follows a "report card"' issued last month by the Commission on how well each of the 15 EU states were implementing a package of EU telecoms legislation.

It said most were on course to meet the January 1st deadline, but that others needed to make "considerably more effort".

EU Competition Commissioner, Mr Karel Van Miert said then that the Commission planned to open "infringement procedures" against the recalcitrant countries.

Officials said the governments would be charged with failing to implement properly either EU directives requiring the end to state monopolies or back-up legislation designed to make it easier for newcomers to compete.

Some countries,including Belgium, Germany and Portugal, will face legal action in two areas, officials said.

The Commission will today give the governments a deadline for responding, after which it can threaten to haul them to court if it is not satisfied.