Should Europe Regulate Sovereign Wealth Funds?

Europe must accept the challenges of global competition, and transnational investments are the basis of thriving economic development at home and abroad. But EU countries must not allow themselves to become the passive economic playthings of other nations, or of big state-owned enterprises.

WIESBADEN – State-controlled investments from overseas – so-called sovereign wealth funds (SWFs) – are now the subject of intense debate. The United States and France have made their fears known. In Germany, too, the debate centers on SWFs’ political and economic significance for the country’s future.

The problem has been exacerbated by the growing wealth of a number of countries, some of them formerly run by socialist or communist regimes. China, Russia, India, and the Gulf States have integrated their wealth into the global economy, to the immense benefit of world trade.

The openness of Germany’s markets makes them especially attractive to global trade. This openness will not change, yet there are some who now call for new safety fences – in other words, for protection.

To continue reading, please log in or enter your email address.

To read this article from our archive, please log in or register now. After entering your email, you'll have access to two free articles from our archive every month. For unlimited access to Project Syndicate, subscribe now.


By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.