Eddie George: "Our situation is not the same as theirs"

The euro's debut on the money markets is being hailed a success and trading has been strong. The European commissioner in charge of the Euro's launch, Yves Thibault de Silguy, has urged Britain to join the currency soon.

But Mr George told the BBC's Newsnight programme that the time is not right for Britain.

He said that factors such as high unemployment in the rest of Europe would have to be ironed out before it would be beneficial to join.

Not tied

He said: "The advantages of not being in the euro is that we are not tied to the same interest rate as the whole of the rest of Euroland."

He added: "The key risk in belonging to the euro is this question of whether a single monetary policy will be appropriate to all the member countries."

He said that the UK's situation was not the same as the rest of Europe at the moment because "we have been for the past five or six years at the top of the growth league" and had "lower unemployment".

He added: "We are having to slow down, whereas the they have got plenty of room to pick up pace."

Lord Simon: "Possible it will become the galloping euro"

Trade minister, Lord Simon, earlier said that he believed popular opinion in the UK could swing behind the euro once its benefits become more obvious.

He said: "Customers understand that there is value to be had in the euro, that it simplifies life for them, makes their choices easier, then I think there will be a change of mood too.

"The creeping euro has been a phrase the people have used. I think it is possible it will become the galloping euro, because people will see the benefit in having a single currency."

Increasing hostility

However, according to a poll published in Tuesday's Guardian newspaper, the currency is facing increasing hostility from the British public.

The survey shows that 5% fewer people now believe that the UK should sign up, compared with May 1998.

And those who actively feel that the UK should not join the single currency project has also increased - by 4%.

The ICM poll of 1,209 adults was conducted between 30 December and 3 January.

Results when asked about the euro were: