Tory Eurosceptic MPs are blocking European funding for first world war commemorations because they say the European commission is seeking to promote partial views on the war and further the cause of political integration.

Under the leadership of Bill Cash, who is using his power as chairman of an influential Commons committee, the group of MPs is obstructing EU plans to spend £154m on the projects.

A veteran campaigner for Britain to leave the EU, Cash told the Observer: "We have to be sure the money is being spent in the right manner. Max Hastings, Michael Gove and Boris Johnson all say: 'Let's get it right, Germany started the first world war.' We need to ensure there is no bias in how the money is distributed and that the funds are being used in the appropriate manner.

"We all want to remember the war, but there should be a proper historical assessment and impartiality in how they decide who will receive the grants."

Every national parliament is required to approve the Europe for Citizens programme, under which money will be given to, among other causes, projects across the member states marking the centenary of the war as well as others designed to promote voting in the European elections. As chairman of the Commons European scrutiny committee, Cash has the power to block approval by parliament unless the government finds time for a debate in the Commons. With support from fellow committee members Jacob Rees-Mogg and Chris Heaton-Harris, Cash has prevented distribution of the money anywhere in the EU ever since the programme was brought to the attention of national parliaments for final approval in November.

Cash said he was merely doing his job in ensuring that the terms on which the money was distributed were clear. He added that he was concerned that money would be distributed only to organisations that supported further political integration in the EU.

However, the Observer has learned that the European commission wrote to Commons officials last week to warn that time is running out for the projects because of Cash's delaying tactics. An email from the commission, leaked to this newspaper, said: "Among projects which would like to get grants under the programme are many preparing applications in line with the priority themes of this year, for example 'commemoration of the 100th anniversary of the beginning of world war one' ... or 'fostering citizens' participation in the democratic life of the EU' in the context of the elections of the European parliament ... This would, of course, not make sense any longer if the adoption process is further delayed."

Michael Connarty, a Labour MP who sits on Cash's committee, claimed that the Tory group's "twisted Eurosceptic ideology" was endangering attempts to remember the sacrifices of a generation. "They are making us look absolutely ridiculous and bringing the reputation of parliament to a new low. If this money has been committed to commemorating the first world war, it should be in the hands of those organisations who are going to do that."

An advisory note to the European scrutiny committee from parliamentary officials has recommended to Cash that he now endorses the spending plan and rescinds his demand for a debate in the Commons, or he would risk placing many projects in jeopardy. Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations, whose members would gain from the EU programme, has also written to the culture minister, Ed Vaizey, asking the government to act.

Etherington wrote: "Any additional delay would cause serious risks for organisations which are already in a fragile financial state."

The row is just the latest development in the debate over . In January education secretary Michael Gove clashed with leading academics when he called for it to be recognised as a "just war" to combat aggression by a German elite bent on domination.