Local view for "http://purl.org/linkedpolitics/eu/plenary/2008-07-08-Speech-2-382"
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"en.20080708.36.2-382"2
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"Madam President, I completely agree with the Commission and Council assessment on sovereign wealth funds. They are the trend of the 21st century and this debate is very welcome.
These funds have become more visible again in a time of financial crisis involving multiple banks and investment firms as they stepped in to provide much-needed capital injections to some of these firms.
Sovereign wealth funds are predicted to grow at an increased rate in the near future, which should not scare us. This is a natural part of market development. The capital that sovereign wealth funds bring to the global market is needed to keep investment flowing. They have the capacity to provide liquidity to the financial market and to companies. This is sometimes vital to their survival.
Due to their size and resources, sovereign wealth funds are able to invest where funds are sometimes desperately needed but where others cannot or will not invest.
In theory, like any other investment funds, also SWFs seek good yields from sound investment which moreover tends to be long-term. They do not a priori pose a threat to global financial markets or the European economy; rather they are very beneficial to it.
While there is some concern today with the rising economic power of some oil-rich countries as well as countries such as China and the implications of this, the response to this unease should not be the exclusion of these countries from global financial and investment markets. On the contrary, Europe should welcome the inflow of funds coming from these states and their investment funds.
Naturally the fact that some of these countries are not abiding by the same basic principles with us politically is a cause for some concern. If political objectives drive their investment strategies – however, this has not been the case – there is no evidence that sovereign wealth funds would have caused any major crisis. They have operated in a sound manner without political interference. It is both counter-productive and against the principles of good regulation to discriminate against all SWFs based on their origins.
The basic principle of financial markets and corporate governance regulations should be the same treatment of all actors involved in similar activities. Of course the code of conduct would be welcome but it should be based on this undifferentiation of the source of income."@en1
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