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3/13/08

Reuters: EU business backs SWF code, Denmark wants rules

For the complete report by Reuters click on this link

EU business backs SWF code, Denmark wants rules

The European Union's top business lobby backed the idea of a voluntary code of conduct for cash-rich state-owned wealth funds but Denmark said it should only be a first step to mandatory rules. Sovereign wealth funds (SWFs) hold an estimated $2.5 trillion generated by booming commodity and energy exports as a massive treasure chest for investment in companies. SWFs from Russia and China have been eyeing EU firms, prompting France and Germany to fear that such funds were more interested in influencing strategic sectors than by profit.

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