The European Commission has ruled out for now legislating against the threat of foreign state-backed investment funds with suspect motives taking stakes in Europe's strategic industries, according to commission president Jose Manuel Barroso.
The 27 commissioners met today to discuss appropriate measures as national governments in France, Germany and Hungary, to name a few, raise concerns that funds from the Middle East and China are taking an increasing interest in investing in Europe's strategic sectors such as energy and financial services, and for reasons going beyond pure commercial interest.
“Following an orientation debate by the commission today, President Barroso concluded that there are good reasons for an EU common approach on the issue of sovereign wealth funds, both inside the EU and internationally,” stated the commission today.
“At this stage, the commission does not favour legislative action, but it considers that some ground rules or guidelines on governance and transparency could be useful.”
While stressing that it wishes to “avoid all forms of protectionism”, the commission will revisit the issue in the first half of 2008, setting out a “detailed position”.
Meanwhile, Germany, which has been at the forefront of member states seeking to vet foreign investors, is struggling to reach a consolidated position as different governmental departments fight over who is to be involved.
In the past, government officials have also floated the idea of adding telecommunications to the list of strategic industries.
By Lewis Crofts
© MLex
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