France is threatening to take the unusual step of fining General Electric if it fails to create a set number of jobs in the country.

It is claimed the US industrial giant will renege on a pledge to produce 1,000 new jobs by the end of the year.

The Labour minister Muriel Penicaud said GE would face a €50,000 penalty for every job not created.

The move could be a test of President Emmanuel Macron’s bid to push through more business-friendly policies.

GE had committed to create a net 1,000 new jobs by the end of this year when it bought the energy business of France’s Alstom in 2014. The US company was in competition for Alstom with Siemens of Germany.

But GE had created only 323 jobs by the end of April, the finance ministry said last week.

GE chief executive John Flannery informed French Finance Minister Bruno Le Maire last week that the target was now “out of reach” because of difficult market conditions.

The minister urged GE to “take all necessary measures to comply to the best of its abilities”.

On Sunday, Ms Penicaud went further, telling BFM television: “The [Alstom] contract called for a €50,000 penalty for every job not created.”