LONDON May 15 Mervyn King, the outgoing
governor of the Bank of England, heaped criticism on a planned
tax on financial transactions in Europe, saying it was unlikely
to help the region's embattled economy.
"I don't think it is likely to help very much, and indeed
the thing I find most striking is that here in Europe I can't
find anyone in the central-banking community who thinks it's a
good idea," King told reporters on Wednesday, after presenting
his last set of quarterly economic forecasts.
Germany and 10 other countries agreed in January to a tax on
trading in financial markets, which could be launched as soon as
January 2014, as a way to help pay for the costs of the
Britain has challenged the plan in court, expressing concern
that it would affect transactions carried out beyond the
countries that sign up for it, including in the City of London.
"I do hear an enormous scepticism even from quarters which
are alleged to be behind it," King said.
Last week, Germany's finance minister played down
expectations that the tax could be introduced soon, saying it
was not an urgent matter and could take a long time to be