Germany steps up moves to control global funds

24th August 2007, Comments 0 comments

24 August 2007, Berlin (dpa) - German Chancellor Angela Merkel's ruling coalition agreed Friday to draw up measures aimed at heading off moves by wealthy foreign-owned state funds to build up unwanted stakes in the nation's key industries.

24 August 2007

Berlin (dpa) - German Chancellor Angela Merkel's ruling coalition agreed Friday to draw up measures aimed at heading off moves by wealthy foreign-owned state funds to build up unwanted stakes in the nation's key industries.

At the same time, Merkel's coalition, which has been holding a special two-day conclave at Meseberg north of Berlin, seized on the recent turmoil in global financial markets to again press the case for new steps to ensure greater transparency of the international hedge-fund industry.

The decision by the German Government to again raise the need for improved self-regulation of the giant hedge-fund business through a new code of conduct comes despite the reluctance of both Britain and the US, where the largest number of hedge funds are located, to take action to monitor the 1.4-trillion-dollar business.

However, Germany has singled out beefing up the supervision of hedge funds as part of its Group of Eight presidency agenda, which runs until the end of the year.

Meanwhile, Merkel's so-called grand coalition government is considering measures including bolstering existing laws to ensure more government control of the push by investment funds operated by foreign governments into corporate Germany.

A paper drawn up for the Meseberg conclave stresses that Germany's national security interests have to be protected.

But the government is also keen to ensure that Europe's biggest economy remains open and attractive to foreign investors.

DPA

Subject: German news

0 Comments To This Article