The same monetary policy isn't necessarily the best for every country at the same time

Sir Edward George

In an interview with Deutsche Welle on Thursday, he described the "one size fits all" monetary policy in the eurozone as a "particular risk".

"The same monetary policy isn't necessarily the best for every country at the same time," he added.

Speaking to the BBC's Today programme on Friday morning, he was quick to play down any controversy his remarks may have caused.

He was saying nothing new, he argued - a stance backed by the BBC's economics editor, Evan Davis - and merely hoped to provoke a more realistic debate in the UK

"I am just saying you need to make a very careful balanced judgement," he told the Today programme.

"My concern about the debate very often is that both sides tend to exaggerate their arguments on both the pros and cons."

In the past, Sir Edward has stressed that euro membership carries risks, as well as potential advantages.

Indeed, as many observers pointed out, the pros-and-cons argument applies to any large geographical area covered by a single monetary policy.

For years, for example, manufacturers in the UK have complained that high interest rates designed to cope with runaway consumer spending in the South-East is damaging industry, particularly in the north of the UK.

Politics, not economics

Sir Edward reiterated his view that - contrary to the UK government's standard position - British entry would be a political decision, rather than an economic one.

In general, Sir Edward is not afraid of giving out a public opinion on whether the UK should join the euro.

"I always said there are pros and cons in the economic situation," he told the Today programme.

In the German interview, he also gave a positive argument for joining the single currency, but his misgivings appeared to be more heartfelt.

Referendum

In addition, Sir Edward suggested that if the government were to hold a referendum on the euro now, the British people would probably reject entry.

The UK's Chancellor, Gordon Brown, has long insisted that any decision will be based solely on economic issues.

He has five "tests" which must be met before entry, and for much of Labour's four and a half years in government the rest of the cabinet have gone along with him.

All in one

But Sir Edward told Deutsche Welle programme that - while there had been more economic discussion in the UK than elsewhere in Europe - in the end it would come down to politics.

He acknowledged that having "nominal stability with our trading partners" would be an advantage.

Still, he added, entry might not be a good idea.

"Certainly I see the one-size-fits-all monetary policy as a disadvantage and a special risk," he said.