The Economic Times: Europe fears sovereign fund invasion
Europe fears sovereign fund invasion
The increasing clout of state-run investment funds is causing concern in European countries, where policymakers are anxious to protect industry and strategic assets from foreign takeovers. According to a study by Morgan Stanley, these so-called sovereign wealth funds, which mainly come from emerging nations like China, Russia and oil-exporting countries, have 2,800 billion dollars (1,900 billion euros) in assets and are multiplying their acquisitions and spectacular shareholdings.
Earlier this year, Dubai government investment funds also launched an offensive to snap up shares in big names like MGM Mirage casinos, aerospace giant EADS and the Barneys department stores. And China has also set up an investment fund, the CIC, to manage 200 billion dollars of its 1,400 billion dollars of reserves, the biggest in the world. Even before being formally set up, the CIC had already punched its weight, taking a shareholding of two billion euros in the American investment fund Blackstone.
Note EU-Digest: Slowly but surely there is a financial power shift taking place from the West (Europe and US) to the Far East (China) and Middle East (Oil rich Countries) which is supported by Western Business greed for short term financial gains. The EU National Governments should step in to make sure that industries of importance to the national security of Europe do not get sold to non-European countries.
