The European Union may resort to legislation if the companies do not make sufficient efforts to tackle the problem.

EU health and consumer affairs commissioner Markos Kyprianou said urgent action was needed to tackle obesity in Europe, particularly with children.

In an interview with the Financial Times, he said Brussels would step in if the industry failed to regulate itself on the issue.

He said: "The signs from the industry are very encouraging, very positive. But if this doesn't produce satisfactory results, we will proceed to legislation.

"I would like to see the industry not advertising directly to children any more."

He added that he wanted clearer food labelling "more easily understood by a consumer who doesn't have a PhD in chemistry".

The Cypriot commissioner will announce the self-regulation plans in March, with standards expected to be met by this time next year.

The British Government's Public Health White Paper, published two months ago, promised to work with the industry to look at ways of reducing junk food adverts when children are watching TV.

Health Secretary John Reid said they also wanted to introduce a clearer system of labelling so consumers known exactly what is in the food they are eating and allow them to make healthier choices.

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