German Chancellor Angela Merkel's ruling coalition has unveiled new far-reaching rules to head off powerful foreign-owned state-controlled funds going on a shopping spree for companies in Europe's biggest economy. Of particular concern to Merkel's conservative Christian Democrat-led coalition is the threat posed to key German industries, such as telecoms, banks and energy sectors, by cash-rich state funds from Russia, the Middle East and China, so-called sovereign wealth funds. The proposals, which were unveiled on Wednesday, Aug. 20, and still need parliamentary approval, will mean moves from non-European Union controlled investment groups or companies to buy a stake of 25 percent or more in strategic parts of German industry can in future be blocked.
Of particular concern to Merkel's conservative Christian Democrat-led coalition is the threat posed to key German industries, such as telecoms, banks and energy sectors, by cash-rich state funds from Russia, the Middle East and China, so-called sovereign wealth funds.
The proposals, which were unveiled on Wednesday, Aug. 20, and still need parliamentary approval, will mean moves from non-European Union controlled investment groups or companies to buy a stake of 25 percent or more in strategic parts of German industry can in future be blocked.
