The European Commission on Wednesday urged European Union member states to back the controversial dispatch of early warning letters telling Germany and Portugal to halt their growing budget deficits.

Pedro Solbes, the economic and monetary affairs commissioner, admitted Germany disagreed with the Commission's move.

But, hinting at a risk of turbulence on financial markets, he called on EU finance ministers, to "take a long term view and react on the basis of what is at the best interest of the EU and the euro".

The Commission decided on Wednesday to invoke the early warning procedure of the EU's stability and growth pact for the first time because Germany and Portugal had missed budgetary targets "by a very wide margin" and risked breaching the pact's deficit ceiling of three per cent of gross domestic product.

The ministers meet in Brussels on February 12 to vote on the Commission's proposals.

Ahead of Wednesday's Commission decision, there were reports Germany might seek to rally support among member states against the Commission's move. The prospect of an early warning had stirred controversy in Germany, where the campaign for September's national election has got off to a lively start with the country's faltering economy as a main issue.

But on Wednesday both Germany and the Commission appeared anxious to reduce tension. The German government stressed there was no difference on the substance of German economic policy between the two sides.

"Naturally, there have been discussions between the Commission and myself. But there are no differing judgments on German policy," Hans Eichel, finance minister, said. "There is agreement between the Commission and the government on the content of German policy."

Taking a conciliatory line, Mr Solbes said the Commission's action was preventive, to help Germany and Portugal keep their deficits within the stability pact ceiling of three per cent of gross domestic product. But the commissioner stressed the need to uphold the credibility of the stability pact - which is important prop for the euro.

"If the Commission and council (representing the member states) fail to take action in these clear cut cases, it is difficult to see when an early warning could ever be issued," Mr Solbes said.

Mr Eichel stonewalled when asked whether Germany planned to lobby its European partners to block the Commission's proposal at the February 12 Ecofin meeting. "The rest is a matter for discussion in the Ecofin, and that is confidential," he said.

It was suggested in Berlin that Germany might be hoping enough member states would come out publicly against the Commission's recommendation to avoid the need for direct lobbying.

Officials in France and Britain have indicated concern at the Commission's approach. But smaller states have signalled support for the principle the Commission should not grant special favours to big members.