France’s Sarkozy calls for European wealth funds
Posted by seumasach on October 21, 2008
21st October, 2008
French President Nicolas Sarkozy has called on European Union countries to set up their own sovereign wealth funds.
He told members of the European Parliament that with such wealth funds, the countries of Europe could provide, when coordinated, an “industrial response” to the financial crisis. Sovereign wealth funds are generally state-controlled vehicles in hydrocarbon-rich countries with large sums of money ready to be invested abroad. They are controversial though. Some European countries and the US fear that the governments that control the funds could use them to advance political and strategic goals.