EU member states have been asked their views on France's plan to use pension funds to help it qualify for monetary union following disagreement on the issue at committee level, a European Commission source has said.

A number of committees organised by Eurostat, the statistical arm of the European Union executive, have been discussing whether a transfer of 37.5 billion francs from France Telecom to French government finances was acceptable.

But the source said the committees had been unable to agree on France's plan, and a letter had been sent to EU member states asking for their opinion.

The source added that the member states had been asked to report back by today so that the information could be given to the EU Economic Affairs Commissioner, Mr Yves-Thibault de Silguy. Mr De Silguy would announce a decision probably next week.

At issue is whether the transfer of money to cover future pension liabilities at the state telecommunications operator can be used by the French government in its accounting to reduce its public deficit next year to meet the Maastricht treaty criteria for European monetary union.

Separately, Mr de Silguy's spokesman said the Commission had not taken a decision on whether France's plan would be acceptable for qualifying its budget for EMU.

The spokesman, Mr Patrick Child, was responding to questions about a report that an EU financial accounts committee had failed to recommend to the Commission that it accept the French plan.

The deutschmark jumped half a centime in Europe on market talk about the report.