BOE: Joining euro means return to tax and spend

Sir Eddie George, the governor of the Bank of England, said that the government would have to rely more on taxation and spending policy to control the economy if Britain joined the euro.

In remarks likely to fuel the political debate over membership of the monetary union, Sir Eddie told Treasury select committee MPs that ceding control over interest rates to the European Central Bank would shift the burden to fiscal policymaking.

`We would have to look more to fiscal policy and that would invol