I see we had a spot for G/ON4ROS/P a short time ago (too much QRM here from 1KHz up to hear the station).
Anyway it is my understanding that the CEPT rules say the the Country prefix should be the one currently being issued for the Country of Operation, which means that it should be M/ON4ROS/P.
I don’t think they say that, though that may be how the prefix comes to be chosen. As far as licencees go, there is simply a list giving the prefix to be used in each administration. For England, yes, that is “M”. Using “G” seems to be a fairly common mistake.
2.3 When transmitting in the visited country the licence holder must use his national call sign preceded by the call sign prefix of the visited country as indicated in ANNEX 2: and ANNEX 4:.